They do conduct a background check, credit check, will check cash reserves, and will make sure the borrower is using their funds for business purpose only, but there is less emphasis on the borrower and more on the deal itself. 

This way you can calculate how much you can realistically invest and keep for reserves.

So naturally she is confused (I read this by coincidence). 

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

@Tyler Bushey nice try, those of us with oil are often a mile or miles from natural gas and propane is $$$ and even if you had gas if  you have one boiler it doesn't solve the problem. 

Have a robust cash reserve to handle unexpected vacancies, repairs, or market shifts.Good luck, and I’m excited to hear how your journey progresses!

My bet on the next twist is the death turning out not to be natural causes.

Income reserves in excess of 6 months living expenses, no consumer debts, leveraged mortgages with no payment coming out of pocket.

Do not think you can just start an investment company with 15k (that is reserves only on one property).Work for the next couple of years while you all learn and use your skills to help build the foundation of a future company and leverage your relationship with the alumni to see some of his properties and learn.

Now this might be controversial and some people may disagree with me (even some of my coworkers here at BiggerPockets may have a different opinion which I completely welcome), but I really don't think you should invest OOS in this current macro environment with less than $100k (down payment + reserves).