They could get a risk free return by investing in T-bills, so the delta between that RFR and what you're offering needs to be rewarding enough for them to pursue it.As for the 2nd part of your question, that really is a mystery :)The low interest rate environment always leads to these folks misleading people and mismatching deal operations, and sometimes even defaulting on the property and losing it altogether.Probably because a bunch of these syndicators want to be cool Instagram/TikTok influencers and throw up their arms and talk about how many doors they own, but what do I know lol. 

I have no idea if you can use this approach as a Foreign National but there's nothing to lose in having the discussion.  

Long story short, you lose control of your property.

I would not invest if the good guys are losing ground, but that would run counter to your description that it is an appreciating area.It looks fine to invest in for the information you shared if the long term forecast for the area is safe and stable to improving.

And, yes, some failed subdivisions lose a LOT of value for landowners, all across the country. 

Would you lose a large chunk of money?

Flipping is 10x the time that wholesaling is, in or out of state, and if you don't pay attention you will lose and lose on contractors.A first flip will take you 2-3x longer than you think, cost 2-3x more than you think, and one contractor will walk with your money at least.What you are trying to do is to create a side hustle in real estate, but you are biting off things that you don't have time for.

So I had to call it off or risk getting a bad rep with the other realtors not too mention losing far more money.

You get laid off for a few months and you can lose everything.  

Only way to back out is to lose $20k and change.