Collecting the rent 1930's style.

They will not collect the 800-900 fee until they KNOW that they will do the deal.

Additionally, this structure eliminates the need for active management, as the real estate assets within the DST are managed by the sponsoring entity.As an investor your level of activity would include collecting monthly distributions, receiving  quarterly reports on investment, file taxes annually and 1031 exchange your investment every 7-10 years (sometimes shorter depending on the market).

Personally the only thing I find awkward about it is that you have to "invite" people to fill out the application or pre-application by their email or phone, I'd rather have a link to apply that I could post on my listings rather than have people message me then I have to collect the email, then send them the application, but that's just a minor inconvenience for me.

You are unlikely to collect a dime, so don't worry about how big of a judgment you can get.

Collect 6-8-12 months or more of rent. 

We use Myrental.com to do all our background checks and collect ID and pay stubs from there.

They're not going to close the deal without the money for current taxes due being collected, so you don't have to worry about it.

Worse, they could put the collection on both of your credit reports, which could show for 7 years even if paid.  

They would not do anything and just collect the check for the sale.