If that is the answer then please help me understand it better ... how does a lender make money then ..This is more about limiting loss than making money.Let's say a lender is owed $100k.

(And they say a home you purchase to initially live in can't be an "investment"...)

Id say a few of those years I made some extra money, and most of them I bet I spent more to maintain my license than I actually earned. 

We can't ever say a bank won't call a note as they certainly do, the likelihood of doing so may be a valid opinion, they can but they are not required to in some cases and may not.

I also see times where the listing broker is say a 20% owner in the property and is the managing member for the group and selling.

You might have a bad PM, I can't say, as that could have happened anyways. 

This conversation has gotten complicated, which may actually be helpful, because investing in RE is more nuanced than at first appears.I would say a quick and dirty answer to this question is that most investors are looking for $100 to $200 per month per door.That leaves a ton unsaid to the point of being almost useless information (or even dangerous), but if I were talking to smart investors I know, we'd all have an understanding of the ancillary particulars.Cash flow is critical to many investors because they need the cash, either to pay for their own living expenses or because they can't afford to carry an investment that has negative cash flow.What others here who are not concerned with cash flow (my @ symbol isn't working here on my phone) are saying about profit and IRR is that they look at investing to grow their net worth.

After brokers fees and other costs, lets say, a conservative $150K (low end, prolly much more) He wants to take those funds and buy a small apt in the Bronx (which can go for about $100K or less).

Let's say a foundation repair quotes at 15k, i could do it in 5-7k, that's an instant savings on my side under the repair costs.

That is not to say a buyer doesn't have any rights but legal protections will first fall toward the owner.