As an investor, you want to LIMIT emotional exposure to properties and only focus on the numbers.Once you have it under contract you rely on a GREAT inspection to determine if a price adjustment is needed or to cancel.

An investment club must register with the SEC as an investment company under the 1940 Act if:the club invests in securities;the club issues membership interests that are securities (see above); andthe club is not able to rely on an exclusion from the definition of investment company.For example, a “private investment company” may not need to register with the SEC.

You’ll get a couple of different answers and one of them is relying on great insurance specifically for a STR.

I get what your saying and dont disagree however as a lender myself I have to rely on what written in the deed of trust and note for the right to foreclose. 

The problem is that I live in California (which is cost prohibitive for me currently to "buy local") and must rely on remote management that is local to the investment area. 

Other family will typically step in and help you out.If you've got the money to buy, just find an older adult in your family, and make the pitch, "Hey, I'm looking to invest in real estate...

If more than one adult is in their part, I don't start screening until every adult has a complete application.

Assignee acknowledges and agrees that it is purchasing the Subject Property onan “as-is” basis and based on its own inspection, investigation, and/or evaluation thereof.Assignee is not relying upon any representations of Assignor, Seller or Seller’s agent(s) toinvestigate and report on the condition of the property.

One of the illegitimate (unethical)  part of wholesaling is when a desperate seller assumes an individual has the means to purchase their property when in fact that individual has no money or the means to fulfill their end of the contract without relying on a third party that might or might not close.  

I call it the Con of Complication.There's an industry that relies on complicating REI to sell big courses.