Stepping into the shoes of the insurance company is to my mind "self insuring", although as you pointed out, the insurance industry has different terminology for it, perhaps to exclude the notion that anyone but a regulated insurance company can officially insure something.

Yes I agree with the notion of not wanting to live crammed among the masses and believe me, If I was living back in the Midwest where I grew up I would certainly own a home.  

I just really don't get why you have this preconceived notion that REI and Military are two separate and mutually exclusive things.

The notion is simple, you get money cheaper than you lend it out creating an arbitrage between the two and collect the spread and perhaps a point or two at origination.

Don't work from a position of fear or dread...or pre-conceived notions about inspectors.

Within that notion the idea of a Contract for Deed or a Land Contract arrangement is just too cumbersome and legally problematic.  

Or is this a notion that is just bad all the way around?

I third that notion!  

NOTE: I will second the notion that @Joe Fairless's new book "Best Ever Apartment Syndication" is a must read for all apartment syndicators.

I have to admit my own preconceived notions because when I spent my 20's in a rundown complex, I knew people on Section 8 that we're great people who just needed a little help.