Many who want to scale  fail to take this into consideration,  take on too many projects at once, have no capital to advance the construction and ultimately get stuck in mud unable to advance any of their projects.

For some reason we human love to try fighting nature, thinking we can "tame" it, despite failing a whole lot at it. 

Those are tiny, tiny obstacles compared to where this process succeeds or fails, and that is with the contracting. 

If your budget is so tight that you can't handle a small leak, what will happen when a tenant fails to pay the last month of rent and abandons the property with $6,000 in cleaning and repairs?

They failed to compact the footings.  

-I actually understand where this idea came from, but your memory fails you.

I've seen numerous QI's fail during my 40 years in the business, and most of the failures would have been prevented had their been government oversight. 

That sounds like a strategy that some of the YouTube gurus are teaching to wannabe investors with no money or experience and that is going to end up with a lot of deals going sideways as these buyers will probably fail because overpaying is obviously a bad strategy to begin with. 

-These investments were not even invested in real estate by a real estate company, things like failing companies, crypto, etc.

There is almost no understanding CPM- several multimillion dollar coliving start-ups have FAILED b/c they saw the demand for coliving w/out seeing the need for a respective form of property management (see HubHaus, Common, Starling, etc).