(A) your sitting here planning on EXTREME failure. because the only instance any of this comes to play is in a lawsuit.

If they are new and inexperienced this capital provider is not only taking on the most risky position of the capital stack, but they also are setting the whole project up for failure due to their lack of being able to provide those additional safety measures.In closing, I would encourage you to err on the side of patience and reach out to local, successful RE Investors, to ask if they would JV with you. 

Right now the tenant doesn't owe you money, you believe they owe you money and the tenant disagrees as evidenced by their failure to pay you.

Apr. 1, 2010) (The Tax Court rejected a 1031 exchange because the taxpayer failed to demonstrate investment intent citing, among other factors, the taxpayers’ failure to research whether certain covenants permitted the use of the real estate as rental property and their minimal efforts to actually rent the property).

You're getting the benefit of our Failures and experiences.  

If so calculate the cost of failure and make sure it fits with your risk reward analysis. 

Don't think that one particular out of state market will shoot you to success or abject failure.

The disclosure is usually not a big deal for an investor, but it could be a very big deal if there is a hidden defect, like lead, or sewer system failure, etc. 

Rocket might need some editing after the fact.Anyone have an opinion or success/failure with either, or any other online legal doc resource?

This strategy is an abject failure.