So to me, that is a risky market for exactly the concerns you express. 

I have met some people who have expressed an interest in backing me.

Send a certified letter to the tenant, the owner, the city and animal control expressing your concerns.

GC, lender(you), county officals (zoning is a biggy), builders, a GOOD civil engineer (i cant express how important it is to have a GOOD one), etc etc.

He expressed a concern that with short sales you can have a problem getting the people out.

They just invest the capital you both agreed on and have no further risk in the business, thus why they are "limited" partners, and not just "partners" who helps run the day-to-day operation.Whatever you all agree on; if that is they just give you a verbal commitment to fund a deal, or they deposit the funds into your newly minted business account, you will both want to draw up a business agreement before money exchanges hands.Now there is a lot of legal stuff from the SEC concerning private money, and I wont be getting into it as it's way to deep for this one thread, but what I do is keep a list of people who have expressed interest in investing in properties with me.

The challenges you expressed are due to lender "overlays".  

Even if they express regret, ask them if they ended up making those creditors whole after they emerged from bankruptcy. 

Can you offer some words expressing that?

HI everyone,I'm looking to get started on my 2nd project and I have a potential private investor who has expressed interest in getting involved with me but strictly on an investor level.