It turned out her parents were paying all her bills and the bank isn't going to lend someone who can't make the payments. 

I calculated the interest at 10% and informed the parents that the day after we close, they owe their kids that college fund money back WITH INTEREST (I think that's fair, do you?

The 30 days due diligence allows us time to inspect each property, talk with the tenants, take good notes on repairs needed, potential evictions needed and any other damage control needed so we can get these up and running at 100% occupancy.

Living with parents.

You're not their parents, life coach, or whatever.

Remember you don't have to own a property to control it.Download BP’s newest book here some good due diligence in Chapter 10.

Do they control their own heat?  

"If we control our downside, the upside will automatically take care of itself."

I understand the title would change and legalese blah blah, but eventually the silent partner could just be basically given (eventual) control of the LLC no?

Remember you don't have to own a property to control it.