I think there's a benefit for a new investor to have at least someone to bounce ideas off of and to help mitigate the risks (half the capital and half the risk of loss on a flip or something).

The Nationwide offering seems to be missing loss of rents, which I think is important.

It's not clear what amount of capital you would have to commit but it sounds like you are pretty close to the first loss position.  

If so then a smaller % return similar to what a HML would charge I think would be appropriate.If they are willing to take on more risk and if things went south share in the loss then a higher cut of the profits is in order.I currently operate with an investor in this same scenario.  

Do you think its feasible?

It's there to protect your other assets not like normal insurance were it covers you for a certain amount of loss.

Hi,If I have income and losses from different real estate activities (e.g rental loss and trust deed income), can the loss from rental business be offset against the income from trust deeds?

(Conventional is out since I have less than stellar credit, around 690 due to a job loss in 2010 and getting behind on bills). 

It's a loss if you account for all your expenses.

Tell them you are willing to pay for the items on the list if this gets you to closing table in two weeks; if they keep asking for things you will never get the deal closed and it's time to put it back on the market cut your losses and move on!