This prevents those CL scammers from using your images.How are you priced compared to other units?

The Management of the Coop increased restrictions to prevent buyers from being risky and the Banks increased their Standards.Marshall's $72k Purchased Coop is not even worth $60k today.

What would prevent the third party from investing directly with the turnkey provider?

You cannot prevent others from using those same descriptive words.

I believe the root of my tenant's concern is a result of what happened to him at his last place.

Workers are taxed heavily and prevented, unless you're an accredited investor, from investing in higher return LP investment opportunities...leaving options available....public funds and retirement plan high-fee racket also only allowing you to invest in public funds unless you self-direct.

This is the only issue that preventing me from closing on the project.

@Daniel C.In 2004, I bought a similar property like the one you are describing.However, at the time, Clinton Hill was the similar to what Bed-Stuy was about 5 years ago.In your case, the property is $1.25 Million now.In my case, it was $890k and cashflow broke even.Fast forward to today.I cashflow $3k per month.The property is worth around $3 Million.I have been investing in Brooklyn for 20 years and now have 6 multi-Family including 2 in Bed-Stuy.If the above example is too long for you, then I'll give you another example.In 2014, I bought a 4 Story, 3 Family building on Hancock for $900k.Put in $300k of renovations.Today, it cashflows $1.5k and the building is worth $1.8 Million.People tend to do Cashflow analysis as if the Cashflow that you get today will always be the cashflow you get for the rest of the Investment's life.In NYC, that kind of logic will prevent you from buying Great Properties which will not only give you fantastic appreciation, but will give you a ton of cashflow in the future.That being said, as @Richard Mui mentions, it's about block by block in Bed-Stuy.

Property has violations which may prevent you from getting a loan.

I'm rooting for you. :-)