Although certain defenses do exist including, insofar as is relevant here, unreasonable hardship, " 'the court's discretion to grant or deny specific performance of a contract for the sale of realty is not unlimited; unless the court finds that granting a decree of specific performance would be a drastic or harsh remedy, or work injustice, the court must direct specific performance' " (id., quoting 91 NY Jur 2d, Real Property Sales and Exchanges § 204).

A HUD complaint can cost thousands in defense, even if you are found innocent.

This new twist of claiming you owe them money is a typical scam tactic to put you on the defensive so you won't contact them about the money they actually owe you. 

Experienced syndication sponsors are considered experts in the real estate field and are often invited to various investment conferences to speak in keynote presentations and on expert panels.

The advantage of Reg D over relying on the general exemption is (1) if you comply the SEC can’t come back and say you should have registered and (2) if your sued by a disgruntled investor you have a definitive defense, which means an attorney is unlikely to take an investors case on a contingency basis - unless fraud was committed.  

Did you all ever connect via conference call to discuss? 

Its also a good idea to build relationships with realtors, contractors, insurance agents, real estate attorneys, and property managers in your area so take advantage of events, conferences, and meetups.

Dominic, I've found that participating on BiggerPockets forums, appearing on podcasts, and speaking at conferences have built trust with first-time passive investors when those forum posts, podcast discussions, and conference presentations show my experience, track record, and market knowledge to those reading, listening, or attending.This doesn't mean "selling from the stage", but instead, sharing actionable, useful information that I've gleaned from my many years of experience and from my own research. 

@Wiley Hood DIY cost segregation tools like KBKG can be cost-effective for simple properties, but they lack the precision and audit defense of professional studies.

We went to a bigger pockets conference to get us started.