I've seen a case where the lead sponsor, mis-managed the asset, and put the asset in danger of foreclosure, when the bank called the other KP's and let them know.

Dangerous assumption for a buyer to make unless the builder gives some sort of iron clad warranty/guaranty; preferably, with an escrow of some sort. 

I agree leverage over leverage is dangerous especially if it's tied to primary.Rather than using HELOC as downpayment for a BRRRR project, better to use loan from 401k and/or Portfolio LOC.

We’ve witnessed the danger firsthand of other property managers with the following common fees.Two common dangerous fees:- Resident placement fees - 1 - 2 months upfront, this incentives PMs to have residents move out every year.- Kickbacks from contractors - Incentivizes deferred maintenance PM fees are only assessed, if and when the home is incoming generating.

With all respect to OP, not sure if we have established that yet.Commercial space is THE most DANGEROUS arena to go-it WITHOUT an agent/representation.

Keep in mind this business is all about details, so referencing or following the wrong statute(s) can be dangerous.

VERY DANGEROUS if you buy sight unseen.  

@Samuel JolicoeurThere are plenty of jobs, careers and businesses in the real estate field other than wholesaling or brokerage.Real estate INVESTING covers a lot of territory.  

The smoke can contain dangerous chemicals.

Some areas are more dangerous than others.