If I have highly leveraged properties, as long as they cash flow, the bank takes the risk with me. 

Short term, leaving financing in place during rehab prior to resale — great strategy with limited risk to either party. 

I was involved in two small infill developments in Michigan (about 15 houses in total) so two very small parcels. 

If you’re heavily involved in the wholesaling world, this may be easy.

Leveraging equity does involve some risk, so it's important to have a sound strategy to avoid overextending yourself.

Are they given a JV-co-GP position for fundraising or will they be involved in the management of the property?

With 20 years of experience managing 30+ long-term rentals, a few STRs, and running a property management company in Central Florida, I’ve learned both have their place in a portfolio if you diversify based on your risk tolerance and the timing for your goals.

My involvement would go down drastically to where the only thing I'm doing would be funding the deals.  

This phenomenon not only poses significant risks to property owners and managers but also threatens the integrity of rental transactions.

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards.