Or, lenders worry about your exposure as a borrower to them so they focus more on the amount you owe them. 

Ive always been interested in real estate (I own a couple rental properties) and want to grow my portfolio and exposure.

As a sole proprietor, I'm looking to scale my real estate business and protect my personal asset exposure, does anyone have insight on whether I should purchase my next Muli-family either through a limited hold co. or should I incorporate?

Perhaps we'll have a developer step in here to weigh in, too.I'm following your logic on the exposure to the lender, and I tend to agree. 

I am concerned about if there would be any potential exposure to Environmental issues if found,  The area is experiencing good growth with new outlets/ businesses.How do we limit our exposure, Is there any type of EPA Brownfield program, which if we join will limit our exposure.Our idea is to buy it with own pool of funds from frends,  and later build public storage on the existing slab. 

If not, what about the currency exposure? 

Forgive me if I took your question out of context and the excessive amount of metaphors, it just seems that the money that is meant for a deposit is already spent, figuratively speaking.

I found out that the property is on a high water table and there was a sump pump in the crawl space to help with excess water. 

I know people apply at multiple places and somebody in a luxury position (i.e. landlords) shouldn't be excessively-profiting from these applicants just because we can.

Maybe this is all normal but it seems excessive to me.