I always say the biggest way to overcome fear is MASSIVE action .

"I'll only work with someone who invests" is just an objection that people throw at you that can easily be overcome by any or all of the items above. 

The return for a flip, especially if you've overcome the lead paint issue, would put you in another bracket as well.As for the existing 2 bedroom,  I'd try to switch the living room with that one bedroom upstairs unless it's normal in that area to have living rooms downstairs.

What I do is to present solutions to overcome his problem(s).

We need to master overcoming objection and realize that banks and seller and buyer and people are crazy and confusing.We need a good sounding board, team of people, solid spouse and strong mind to get through the accumulation mode of buy properties and controlling property. 

I changed my job and increased my income to overcome that fear.

Those banks selling off generally have "buy back" provisions built into the loans in case they were not underwritten properly and a default occurs.With commercial lenders they look at liquidity, net worth, annual income, and track record.You can overcome track record with high net worth.

I expect to work hard, so am not adverse to the work.  

Misdemeanors are case by case basis.All adverse decisions get the appropriate FCRA notice.

I want to communicate the bill in a way to not create tension and adversity.