"Why does it seem like a scam, have you had others fail to perform in the past?

Lastly, I am in the process of getting my brokers license so I can perform property management services for my clients in addition to my own portfolio.

Please note that you are obligated to pay back their 401k (regardless of the performance of your real estate investment).As an alternative to taking the loan, you could even purchase the investment property directly using funds in your Solo 401k (assuming you select a Solo 401k plan provider which allows you to invest in real estate).

The Purchaser will be entitled to a refund of earnest money only if the Purchaser obtains an independent lead-based paint inspection or risk assessment performed by a Certified Lead-Based Paint Inspector or Risk Assessor, and the Purchaser provides HUD with a copy of the inspection report.This seems to me like if we got this LBP inspection done and there is LBP in the home, we can at least walk and get our $1k earnest money deposit back.  

Such cooperation shall include the performance in a timely manner of all of Seller’s pre-closing obligations under this Contract.

If you are daring, perform a group interview.

We did supplement investors rents or other costs where we feel we could have performed better as a company or even where we felt they had taken extraordinary steps of faith with our company (such as purchasing 5 or more properties) and we felt we could and needed to assist. 

Renters in place in October 1, property is performing as expected.

Offer them a fixed interest rate plus a performance bonus that is based on the profit (i.e. 25% of the net profit).One of the nice things about dealing with private individuals and not HML's is that you can get creative.

If Landlord exercises this Right, binder funds will be mailed within 7 days to Prospective Tenant(s) at the address listed on their application.Move-In RequirementsFirst Month’s Rent must be paid in full in the amount of: $__________Last Month’s Rent must be paid in full in the amount of: $__________Security Deposit must be paid in full in the amount of: $__________Other Move-in Fees must be paid in full in the amount of: $__________All tenant paid utilities must be transferred into Prospective Tenant’s name.Background checks done on all occupants aged 18 and above.A Lease must be executed and signed by all parties.When all move-in requirements have been met and Prospective Tenant(s) given possession of the property, the binder will be used as the last month’s rent.