But for large multi-family, that amount hardly covers your legal fees for one transaction, let alone down payment, due diligence costs, lender fees, other closing costs, etc.

There is fine line between the two depending on the structure and source of the capital.My preferred equity partners do quite a bit of due diligence on the sponsor as they are essentially teaming up with them to do this deal.  

I do agree with the others that the officer doesn’t seem to be doing their best here and further due diligence/follow up on your part might be useful.

Just do your due diligence and research before you make any costly decisions. 

The investors have been doing due diligence to find out what is really going on with their investments.

This shows due diligence, not distrust.For seeing the property, if it’s your first deal, consider visiting or hiring a third-party inspector for peace of mind.

I'll continue doing my diligence, using your posts as another guidepoint. 

I did some due diligent research on this company as I am also considering to use them due to low price but worried about scam.

And then you can use that information to start to develop your own personal due diligence method: Crowdstreet.com, 1031 Crowdfunding, Akr7, Finresi etc.

But keep in mind if your using money you cant afford to get back then buying action property might not be appropriate for your current endeavors and its better to just buy open market were you can do proper due diligence and know you have a build-able site.