You want to sit here and crucify other people in the name of equality but in the same breath pass judgement onto others based on your stereotypical opinion of them.

Liability insurance will pay legal fees and the judgement up to the amount of insurance.

You can then get a judgement against him in court for monies owed.

However, are you allowed to make a judgement call on each individual tenant based on the totality of the information on their credit report, income, etc., or do you need to set up strict rules in advance for the credit report (i.e. up to $500 unpaid medical bills allowed, no bankruptcies, no child support in arrears) and not deviate from that?

Some states have laws about how much you can collect in a judgement, I charge a flat $50 late fee on the 2nd day (rent is due on the first, it's late on the 2nd).

They are felons due to their mis-judgements and bad decisions they chose to make.

One lender in particular though responded quickly and answered all of my questions thoroughly without judgement.

We will make a vivid vision for our lives, speak out loud our ambitious goals and encourage one another and hold each other accountable to those goals.This will be a comfortable group to ask “dumb” questions and not receive judgement, mainly because we are probably all wondering the same thing but feel intimidated to ask them to advanced investors. 

What does it say about his judgement?

While any and all education can be valuable, there is no shortcut to knowledge, experience and judgement needed for commercial real estate investing.