In that case, if the deal goes bust, the loan holder forecloses on the property, and uses those proceeds to get back some or all of their money.So personally, I would recommend doing that (i.e. investing in "hard money loans"). 

Or all qualified tenants pay their rent?

Often, a single entity service some or all of these.  

If you have not done any or all of these things, your search for debt and equity capital is premature. 

We must do bi annual check rides and oral examinations.. and if your instrument rated like me you must stay current through practice and check rides.But I go way beyond that...

- You will want to plan out how soon you might need to replace any or all of these items and how much they will cost to replace.

Yes, if you read the risks section of the Private Placement Memorandum for that syndication or any other, you will see a disclaimer saying that it is possible to lose some or all of your money and that you are willing to take on that risk as part of subscribing.If you do lose money, there is generally not much recourse.

The only time I see this remotely being an point of concern is if there were horrific injuries and the owner had grossly inadequate Insurance (which should never be the case). 

You can easily remove POF or EMD from your title report by paying off some or all of the mortgage balance with cash instead of refinancing the property before submitting it as wholesale deal to investors who would buy at discounts (Wholesale Property Deals).

Keep the deal structure exactly the same and return part or all of the initial investment to the investors, giving them less "skin in the game" and still allowing them to receive the same return.2.