The partner that took over all those houses made it just under 3 years and went bankrupt.

Sheila,I was financially WORSE than having no money ($0) - I was bankrupt so I was in the negative net worth - and yet, after several years I was able to acquire over 1,000 apartment units.

The only capitalization requirement is keeping a balance of assets sufficient to avoid being insolvent or bankrupt, $100 might meet that.

I split up the soft cost unevenly so I could get more back on the first build So on the second homeExpenses, 300k land+1.1M construction +30,000 land interest +40,000 soft costs +45 k transfer +180k construction Internet (I hope to get this down by getting a 12% loan from the bank having shown that I can pull this off already and the house will be pre sold) +50k management+101 closing cost net profit = 2,250,000-1,846,000 =404,000 NET PROFIT + 40K BACK IN SOFT +50K MANAGMENT+30 INTEREST AND I WALK AWAY WITH $524,000+$444,000 FROM THE FIRST HOSUETOTAL $968,000 There is something wrong with this math as my proforma shows me walking away with cloister to $750,000, I am writing this on the fly, so to not deceive lets stick to the math I did on excel , So when all is said and done I will walk away in the green plus my costs back and comes out with  $750,000 give or take……compared to selling the lots at a loss and walking away with 250-300kSome may say 18% is absurd but to me, I am grateful for it because there was slim chances of me getting to this point and even more so, selling the lots would bankrupt me and make life hard on my father, so 18% is fine with me.I dont know if I ever mention this, but I bought this land and took this risk for the sole purpose of being able to pay my dads Line of Credit back in full and have 6 duplex,s 12 doors to show for it.

What happens if the seller bankrupts?"  

Many businesses are going to be bankrupt.

I was a broker in Jersey in the 70's for 10 yrs. so I've been through the Viet Nam war years when the VA and FHA went bankrupt, because the Gov wanted to make bullets instead of mortgages.

One bad tenant can literally bankrupt you, especially if you are a small-time operator with only a few units.

I know 3 "investors" who went bankrupt doing it in 2021.

If I made very little money, I would have approached it differently because any mistake would have bankrupted me.- Aside from getting a good deal, the one thing that I can attribute to my success has to be the people around me that helped me out.