Biggest downsides are the returns are not stellar normally and it is sometimes difficult to sell your interest in one. 

I always put them in a safe position by having them put a mortgage lien on the property to secure them and I always buy properties with equity upfront or I know no matter what happens, I can create a huge increase in equity through value-add.So here's my advice to newbie investors or investors who want to raise private money: always protect your investors' downsides and be clear and transparent about all the risks and what you intend to do to mitigate those risks.Also, those who want to invest passively or invest out of state - DO YOUR DUE DILIGENCE and always ask for a 2nd opinion from a third party.

Looking at it from an upside to downside risk it would appear to me that you don't gain a lot, but have an increased exposure.

The only down side is the 20 yr amortization schedule.

If that number comes out lower than you expect, then you can adjust your strategy accordingly.Leverage is simply a multiplier - both on the upside and the downside.

Investors want to see that you would suffer some financial downside if you defaulted, rather than having the ability to walk away with no repercussions.

Like with me having bought turnkeys, I can tell you who I love, who I hate, and in some cases good providers who may have some downsides but those downsides can be handled. 

There are many reasons that I haven't gone back to school, but the unbelievable amount of debt people take on to attend college is one of the main reasons so I do appreciate what they are trying to do with their system.I think the point made repeatedly throughout this thread is that if the motivation is there, there really isn't a huge downside (other than debt) to going back if given the opportunity.

(I am a fairly conservative investor) so this plan would also help you mitigate some of your downside risk if one of the moving parts implodes the whole deal.  

The only down side is that the deb is recourse.