I'm not sure you are considering factors such as, off the top of my head: 1) unlike the have-a-pulse-get-a-loan scenarios of yesterday, they are required to have proper debt-to-income ratios and meet reserve requirements so as long as they don't lose their job for an extended period, they've proven they can afford the payment; 2) even in a down market, they will have to live somewhere, so unless rents are much cheaper, which is unlikely, it makes more sense to not ruin their credit, keep paying and stay where they are, especially if they've improved the property at all; 3) these loans are much more likely to be 30-year-fixed, not the ARMs of yesterday that adjusted up to a surprisingly unreasonable payment (many didn't understand what they signed up for until, Wham, the payment doubled on them, so they had to walk); 4) they pay MIP, upfront and monthly, so there is some protection for the lender if they do default.Many of these people would be stuck paying much higher rents, building others' equity instead of building their own, without FHA loans.  

I have someone that's looking to invest in multi-family developments however I'm not sure how to protect myself before connecting the two and how I should look to be compensated.

Do I need to buy title insurance to protect me as a seller?.  

You can insist on doing it "your" way, ignoring local customs, to your own detriment.

In my class I met someone who does general contracting (we're meeting), a couple that does cleaning (commercial and residential), a painter, a couple who owns a custom cabinetry company, and a stager/designer (good to know, but my sister is great at interior design and I'll probably collaborate with her for staging/decorating at least in the beginning).

Have them bid on the work you want done so you can compare prices and ask to see their previous work/make sure they are licensed, and can sign a liability agreement, protecting you and your business.

My partner and I are looking to dip our toes in the REI pool and realize the promise of financial independence.Our plan will most likely include creating an LLC to provide protection (tax, liability, brand), starting with flips to build capital, diversify into buy and hold/BRRRR to build wealth, and finally retire in about a year to live life ;)We've been lurking on BP, reading @j_scott and @brandon_turner, and listening to the podcast.

I am a commercial banker in Durango and one of my colleagues has a customer who is looking to purchase one of two dollar stores.

Of course, it will be different in each market, however the average responses based on our own mailings as well as our customer feedback is where I am basing my opinion of a great response.Whatever route you decide to go, I wish you luck!

Commercial contracts do not have the same protections as residential contracts.Commercial contracts have a feasibility period, rather than an option period.