Because two things: first, if you can't save enough money to make a down payment on an investment property, you shouldn't even be in this game, and second you are going to need cash reserves to cover the infinity of things that can go wrong on a rental, which means you should already have some free cash flow coming in from somewhere to account for that before you even rent the place out.

With most syndications that are experiencing trouble, the issue comes down to: is there enough cash flow and/or reserves to keep the deal alive long enough?

You can't confirm their rental history, how well they pay bills, etc.

You need to build up personal reserves and then save for a down payment. 

You will also need to show some reserves.

Went and saw it this weekend and confirmed it's log siding.

Exploring foreclosures, REOs, or sheriff sales can be good opportunities, but they require due diligence and possibly some cash reserves.

., confirmation of the new loan terms under the new borrower's name).

I’m also pursuing my broker’s license, so I’d like to have some cash reserves when that time comes.

There are some workaround these requirements, but it comes down to Experience, FICO and Reserves