@Bryan Hua There is a lot to unravel here so let me take my best stab at it.1) Short answer, yes.

Having to unravel this kind of stuff would be largely avoided.Good luck on this one. 

Lets things un ravel.. 

Its already been done once, in 2000-2001 we had the tech crash/ 9/11 and things began to unravel.

You have plenty of knowledge to begin.What you view as your potential risk (ending up stuck with a home you can't sell and forced to take HM) is not really accurate.If you are trying to organize same day back to back closings, you will not get "stuck" with the property.The transactional lender wants to guarantee his money so he will inform the Title Agent not to disburse funds from the A-B closing if the B-C closing does not take place the same day.So if the B-C falls apart at the last minute (happens often), the A-B is simply unraveled and you don't buy the property.Worst that happens is you lose your Earnest Money and maybe some closing service costs and a bit of your reputation with that Loss Mitigator.

So, (not asking for legal advice) what types of clauses or information would one want to definitely include in the partnership agreement.What are some issues that others have encountered in an agreement when things unraveled?

It is possible that certain types of activity could unravel the favorable tax treatment with a one-size-fits-all fund.

He says there will be no where to hide when things get ugly later on next year, it pays to at least be prepared for different scenarios or think of what you might do if things unravel as some are predicting!

Also start trying to do several deals at one time so you do not have to worry so about losing the one deal if things start to unravel.

This one just happened to unravel rather quickly.