If the deal collapses and I would lose everything, I'm out.

So my question is this...One thing I never understood during the 07/08 housing collapse was what happened to RE investors who had a bunch of mortgages.

New housing starts unexpectedly plunged more than economists projected in June as home builders grappled with the effects of rising interest rates curbing demand for new homes, according to data released Tuesday, adding to signs of an abrupt turnaround in the booming housing market.KEY FACTSThe number of housing starts, or ​​new houses on which construction has started, fell 2% to about 1.56 million last month despite average economic projections calling for an increase of 1.4%, the Census Bureau reported Tuesday.Building permits were slightly above expectations, coming in at less than 1.7 million, but fell from May and are down from about 1.8 million in April.In emailed comments after the release, LPL Financial chief economist Jeffrey Roach said housing starts declined because demand is “quickly drying up” from higher borrowing costs as the Federal Reserve raises interest rates, though he expects home building activity should hold up despite the grim outlook.Pantheon Macro chief economist Ian Shepherdson was less optimistic, pointing out single-family starts and permits both fell by 8% in their fourth consecutive month of declines and noting construction activity lags sales, which in turn lag mortgage applications.Mortgage applications have collapsed more than 25% this year, he adds, suggesting single-family housing construction "needs to fall by [another] 20% or so over the next few months” to be more in line with demand.The latest data comes one day after the National Association of Home Builders reported the second-worst single-month drop in home builder confidence on record, driven by ongoing production bottlenecks and high inflation that have pushed the cost beyond its market value in some cases.KEY BACKGROUNDHistorically high savings rates and government stimulus measures helped ignite a home buying frenzy during the pandemic, but signs of a slowdown have quickly emerged as the Fed embarks on its most aggressive interest rate hiking cycle in two decades to curb high inflation.

There could be all kinds of fire risks in there (think dryer vents full of lint that can still cause a fire even if sealed off), partial collapses, cracks, and other evils.

Should another financial crisis befall us, rendering a number of too-big-to-fail banks insolvent, the good news is that taxpayers will no longer be forced to bail them out.The bad news is that these large Wall Street banks can now legally bail themselves out internally (referred to as “bail-ins”) using depositor funds.Thanks to Dodd-Frank, if you happen to hold your money in a savings or checking account at a bank, and that bank collapses, it can legally freeze and confiscate your funds for purposes of maintaining its solvency."

If you cant screen or dont understand how to manage, a class A or B can collapse around you.

Commercial real estate such as offices maybe collapsing.

which creates what I've been thinking : the supply and demand is artificially created by the number of dollar is being circulated, just like a stock market.currently money supply is increasing since the last six months hence triggered buying activity in loops.These days, it seems having good investment is better than having company that may collapse at any time.

Lots of folks like using an LLC to enter into some kind of favorable contract, then sell off the benefit to another company they control, then collapse the obligations of the contract in an LLC shell that has no assets. 

(Yes it’s a thing there’s little sidewalk plows/snow throwers that the town will own.)The landlord is definitely responsible for snow removal from the rooftops which if it builds up can cause ice dams or worse collapse your roof.