I believe most who sign up for these programs are too naive to know what's happening but if you are someone who does and still believe this is the best path forward I question whether you possess the moral compass or responsibility to care for someone else's hard earned money. 

We have the cash for the property purchase right now so I thought it would be easier to get a loan for rehab once we took possession of the property since the value of the property at the end of the rehab will be close to 3x of what we will buy the property for. 

A successful partnership requires the following skillsets among its partners - Time, Money and experience.Which skills do you possess and which skills does your friend possess?

Be sure they receive the Notice of Non-Renewal in October, and the property (unit) should be back in your possession at the end of November. 

They have a set of character traits in mind, and they skim through websites, skipping and skipping until they find one person who possesses the traits they expect their ideal cash buyer to have.I’ve developed a concept that’s generating me more leads and deals than anyone can imagine.

With your current knowledge base you are not in the position to determine the "shortcomings" of any law firm or come to the conclusion they possess a " lack genuine expertise".

@Ricardo Polanco I would not grant buyer early possession without a large nonrefundable deposit.

An attorney can give his opinion as to what the odds are of the different ways a legal dispute can play out, but it’s the investors decision based on a cost/benefit/ risk analysis to decide how and of to proceed.There’s no way for anyone to render an opinion about what you “should” have done without (1) complete information as to the property being purchased and (2) complete information as to the risk tolerance and financial makeup of your investment group.Here’s my advice - don’t second guess yourself based on opinions of people who (1) don’t possess “all the facts” and (2) probably never acted as sponsors of a syndicated investment.  

He is now claiming new tenants took possession of the house a month after they actually did, and therefore he will sue me for the month of lost rent. 

If you need a reliable roofing contact, let me know—I’d be happy to recommend someone.Your agent should have negotiated a clear possession date that accounts for the seller needing extra time to move.