We for instance will not lend more than 90% of purchase.

I know it is intimidating to have debt, but it is important to remember that debt can be used as a wealth builder in the right instances, and by getting access to more credit before the next rate hike, banks are more willing to lend now.

Sometimes once someone opens a project up and sees what all needs to be done they just want out as they realize they didn't correctly assess the repairs or as others stated, ran out of money or realize they will.We bought a "cheap" house and then discovered that the renovation was going to be much more extensive than we anticipated.

For instance my parents who have a mortgage on their home were supposed to have a payment of like 600$ a month but due to an error from the mortgage company the taxes where not included into the bill for the first year like it was supposed to be and they said it was.

I see no logic to conclude theft in this instance except by the tenants.   

For instance, it's almost malpractice that 9/10 the buyer or seller (usually never both) show up at closing and have to sign a stack of papers they have never read nor will ever see again.

*For the purpose of this post, assume "investing" to mean "buy and hold large multifamily apartments", and "developing" to be large commercial or large multifamily (not single-family)*Investing and developing both require extensive market analysis to ensure that the area you plan to have property in is a sensible location.

In both instances, there were numerous trips to the home, numerous appointments with the tenants, numerous co-pays and in the end the problem was not resolved. 

For instance, you don't learn a ton about Real Estate Investing as you are taking the RE licensure course.

The contract falls through and we get an extension of contract or the seller gets the earnest money.The alternative to that is they sell the property they have been neglecting and live happily ever after.Now please please explain how this is a scam.