Furthermore, it sounded like they were mad at us for using their name on our pitch deck to the broker when we thought that was the main reason we are signing up with them, to leverage their experience and credibility as a sponsor.We were super disappointed, but to make things worse I heard later that Ryan Woolley was telling other students that we didn’t have our act together and it was a bad deal.

Leverage the equity with an HEI.

And yes, over leveraging a Subto and using "gator" lenders is not only bad practice, but it's going to lead to law suits.He is wrong on so many levels that I have posted extensively on it and it gets boring.

We leveraged our expertise in negotiation to secure it at a competitive price of $140,000.

Using excessive amounts of leverage allows the sponsor to project enticing looking, large returns (and which attracts a certain type of investor).

You don't want to over leverage yourself!

Did they over leverage on purpose, knowing that they would eventually get the assets back at pennies on the dollar?  

I get a little bit if you paying cash.But if your max leverage like most investors.

Private financing where an investor can get a loan from an individual rather than a conventional loan because you can get more leverage and have more room to negotiate

Hiring a property manager under Option B lightens the burden but eliminates cash flow if you leverage the property with a DSCR loan.