I think the deal has to be so bad for an investor to ask for this. you as an investor need to find an amazing deal for this conversation to never arise..good luck

I also want to hear experience of OOS investors in Self Managing the properties and seek help of PM when specific issues arise.

I think any list of bad sponsors needs to be broken down into two categories: 1) Inexperienced sponsors that got caught up in a rising interest rate environment, and 2) Bad sponsors that are either acting malicious and/or greedy.There are many many many sponsors, particularly those on BP and raising capital on social media, that fall within the first category.Category #1 - Inexperienced Sponsors:Ashcroft, Opendoor, Elevate, Western Wealth, Tides, ZMR, GVACategory #2 - Malicious/Greedy sponsors:Appleway, Nitya, Rise48, any "fund of fund" sponsor that's come out of Rise 48, Grant Cardone, Affinity, Nightingdale, Rockstar CapitalThis is just a short list but I think it's important to protect LPs.

Keep learning as much as you can so that you can be ready if an opportunity arises.

As such, third parties (lenders, brokers, tenants etc.) should sign contracts with the Management Company and not the Investment Entity to add an extra layer of protection for the Investment Entity against any lawsuits arising from those contracts.

Catch all the red flags prior to submission cause once you submit a file that has uncaught red flags, that's when your process slows and lender's get nit-picky.From a lender, I want you to work fast, if I am hustling on my end to make it easy for their processor and underwriter then I expect fast work with an open line of communication and I want my rep at the lender to be able to fight for me or my clients should an obstacle arise - which they usually do.

And if there is wind(roof) damage then a whole lot of question arises. 

Now, if sitting on a pile of cash, that is "insulation" or PROTECTION for the various "what-if's" that can and WILL arise for persons in such OVER-leveraged positions.

Like the saying goes, a rising tide lifts all ships, but when the tide goes out, you can tell who’s been swimming naked.

In the short term we might not see any issues, but overtime, cases will arise when Buyers start getting screwed in shaky deals.