This is a significant risk to the other two parties that are bringing the deal and the money when they could just as easily hire a contractor and keep the equity for themselves. 

Oil and gas wouldn't be what it is without the government taking on much of the risk through the intangible drilling costs tax credit, and the depletion allowance act deductions, and literally hundreds of other tax benefits, loopholes and direct subsidies plus the fact they have access to public land to be drilled for pennies on the dollar, and the government cleans it up once they're done. 

@Adedotun Kembi Most lenders will only lend a total of 65-75% on a rental and at much higher interest rates due to the higher risk.

Various legal setups can  mitigate a large part of this risk.  

I currently broker LIHTC multi-family for a large firm coast to coast and am also interested in MF in the Arizona submarkets as well, and will eventually invest on that scale - I just figure breaking into the state through SFH flips may be a more risk adverse way to understand the pros and cons to phoenix submarkets.

The PLRs and Risks are discussed below.

There is no stock account that gives the leverage real estate does, at as low interest rate real estate does, at as low risk/ volatility real estate does. 

EXACTLY Darius its well known in those circles  this is why the state of PA is coming out with new laws that will clearly define how the lease option works and treat it more like a seller carry back with Dodd Frank protections.. 

The real art of underwriting is understanding that all the inputs are merely probabilities and deciding whether or not you can sufficiently offset the risks.

You are also putting yourself at risk working that way.