If you are trying to flip properties or deal with severely distressed properties, or distressed properties at all, it could be fairly dangerous for a new investor.

I would get it if he said "don't buy there it is dangerous", but this just rubbed me the wrong way.I presented how i see numbers and showed the calculation that it is about 12% ROI and ask him to clarify what he means.

Unfortunately, here in Atlanta I am having difficulty finding some in my price range that are in ridiculously dangerous neighborhood.

The types of loans that I’m suggesting you look into investing certainly comes with their fair share of danger.

and you don't have surprises after purchase, the main danger is overimproving and feeling the need to rebuild everything because it's old. 

That is the danger of these cheaper properties, Capex takes such a big bite out of your income.

There is absolutely no danger that giving away secrets will hurt my business.

Nothing I said was in disagreement.... just a warning about the danger in trying to wholesale to retail buyers, in general.  

Is there a danger of this insulation being asbestos?

Unless you are in the RE game or have family in it, flipping is dangerous business.