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?

.$50/-55sf = formica in rental units built close to the $52-55/sf$55-60 = Granit Counters or 2cm Granite plus custom marble counters in bathrooms unless Buyer selects full granite option if the have time to do so prior to fabrication.25 year 3 tab roof shingles/ 5:12 pitch/ brick fronts & mailbox with rear and side elevations hardi-siding/  9' plate line/ vaulted to 11' in great room areas and kitchen (open concept plans)/ Stained Concrete Floors/ Pre-Fab Cabinets/ Chrome Fixtures/ Wall have batt insulation/ Attic blow in insulation/ std vinyl windows/ Fiberglass shower tub units and also a garden tub with wall tile/ all Chrome appliances but no refer/  std 3.25 base/ std doors - nothing upgraded/ no fireplaces/ 10x15' rear patios/ 2 car garage/ traditional style homes....Land cost here was cheaper when I first got into this market.  

You cannot prevent others from using those same descriptive words.

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.

Two were leaks through the roof, which in my opinion aren't too bad to take care of as long as you can find the source and you get it fixed quickly to prevent further water damage. 

I think building up your team and getting things in order is a great idea but don't let that prevent you from starting to look for deals.