Although I care less about my financial loss, what upsets me is their manipulative conducts.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

If he overestimated the value of property and can't recover his loss then it's none of your concern.

Having an or multiple LLCs helps keep the finances separate should you have a loss.

It sounds like this may be a loss but I am sure you have learnt from it.

I wouldn't worry too much about it, if you have a competent CPA or bookkeeper they should be able to review your books and within minutes have a strong grasp on who gets a 1099 (spoiler alert, not every contractor gets one, I'll be annoyed if I get one since I'm structured as an S corporation) and the amounts to report.1099 filings are usually a loss leader for us, so if you're working with a professional make sure you take advantage of them filing everything for you.

Their loss is our gain.

I do want a beautiful home because I love to gather with friends and family and want to host.Im in Orlando, and there's so many great restaurants and I love eating really good food and a great atmosphere.  

They find housing on own that can be covered by insurance if home uninhabitable and it is due to covered loss. 

If you want 100% of your investments in public equity, that is fine and you will reap those rewards or suffer those losses.