Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

Secure the debt by real estate, now we're talking a great partnership deal.

However, i'll likely be looking at additional ways down the road to be even more secure for a backup what if scenario.  

They have a group of funding sources that will compete against each other, this helps keep the final interest rate within reason, and offer a partial refund if they are unable to secure financing. 

Private lenders or even creating a small syndicate with a group of investors might also be worth exploring, especially since you can point to your uncle’s track record and your own experience managing rentals as a selling point.If timing is tight, you could look into a bridge loan to secure the property while figuring out a more permanent solution.

All channels can work.. it’s just that some work more often than others.I’ve got a friend who tried a similar stroy a few years back.. she moved out of her condo and rented it to a family member, using the steady cash flow to secure financing on a duplex that had a ton of upside potential.

A good property manager can help with tenant screening, enforce lease terms, and handle evictions more efficiently if it comes to that.Require a Larger Security Deposit: Within the bounds of local regulations, a larger deposit can provide a cushion in case of damage or unpaid rent.Consider Rent Guarantee Insurance: Some companies offer insurance products that can cover lost rent in case of tenant default.

@Shawn Mixundefined I agree Kirstin, Anderson isn't cheap but I feel much more confident and secure with them on my side.

I believed I was putting that hard-earned money into something secure.

If I am doing the security deposit I want to quickly see how old that carpet or paint is.