Sometimes we approve someone who has disclosed an adverse credit/financial history or has no rental history and we will require 3x coverage.

Does the common equity know about this capital (if not, do you want to invest and then have the sponsor subject to investor lawsuits because it wasn't disclosed)?

He was never even a good salesperson (pushy sales tactics are often taught by gurus but simply don't work for most personalities, Jordan Belfort of all people called him out on this during an interview that was very revealing), and his real estate syndication funds are now rumored to be total scams (he allegedly buys the properties separately beforehand then marks them up millions before selling them to his fund using his investor's money, like a wholesaler basically but taking $50M fees from investors without disclosing it.

Also, when we signed up, the sale agent didn't give us a hard copy of the contract and didn't disclose all the fees that involve with city.In addition, I also found out from my research and from my brother in law, who recently purchase a home, that the hero program is not what it seems.

It takes a lot of the headache away from me, plus when I was listing them myself (I am licensed as well), people would be able to see that I was the owner and the agent (because you have to disclose that, in MI anyway).

Substitution of collateral isn’t unethical if all is disclosed upfront.  

Any recomendations for an attorney to file suit against seller who did not  disclose known foundation damage?

And you still have disclose all known defects.

I wish podcast hosts were better about getting the guests to disclose important details like that.

If it has a basement, I'll look for discoloration in the exterior walls, sometimes you can see if there's been water in the basement (where I live sellers are required to disclose water problems).