But I think some of these scammer just add a bunch of disclaimers and “legal” language to give it the air of authenticity (and probably to confuse people). 

Personally, I don't like to put my money into something I can't control - yes the stock market has been great, even during COVID, but I would rather put my money into something I can manage (even if not 100% due to moratoriums and zoning risks) versus a stock that I have no control over and is basically a legalized form of gambling. 

If you invest leaning towards appreciation that’s more like gambling in my books.

Anticipation is gambling and hoping for a market correction.

Investment Info:

Condo buy & hold investment.

Purchase price: $125,000

Cash invested: $45,000

Sale price: $125,000

Condo

What made you interested in investing in this type of deal?
...

Investment Info:

Condo buy & hold investment.

Purchase price: $125,000

Cash invested: $45,000

Sale price: $125,000

Fresh out of university, my buddy and I bought a condo in Pensacola, FL in 2...

Also, prices were somewhat artificially inflated and lenders have become more conservative, effectively moving prices back down to a more authentic level. 

I don’t think it would be a gamble per say.

If that is, say, 40% for his combined state and federal rate, he will end up earning a whopping 3.5% x (1-0.4) = 2.1%.Are you seriously asking someone to gamble his home and accept 100% of the risk, for a 2.1% return on a loan to someone who has no real estate experience?

It's like gambling your paid off house away on a penny stock and losing it all.