1) Value of property declines; 2) Cash flow of property declines; 3) Your personal credit deteriorates; 4) Interest rates go up; 5) Current lender gets bought out; 6) Current lender has portfolio restrictions; 7) Your buddy the loan officer is no longer there.  

@Matthew Paul brought up a great point and I would say is the best way to deal with it.

He is interested in selling it to me, and I even brought up seller financing, because he owns it free and clear and doesn't need the money.Anyways, the property is identical on both sides, 2 bed/1 bath, however the basements are large and it wouldn't be difficult or expensive to add a good sized bedroom with a large closet and attached bathroom, it would technically be the master. 

I worked with another real estate agent brought the purchaser.

I worked with another real estate agent brought the purchaser.

I'm waiting to hear from him, I want to add language that limits his agency's participation to properties they have brought to me or shown me.

I'm not sure how this would come into play if the friend got injured on your property, but as far as opening you up to some potentially bad options if a tenant ever brought a suit against you, I would advise extreme caution. 

I brought $10,758 to close and then the remainder of the "Cash Invested" above when to overage in the construction budget, interest on the construction loan, and utilities.

I brought $10,758 to close and then the remainder of the "Cash Invested" above when to overage in the construction budget, interest on the construction loan, and utilities.

Big investors like the one you're going to be meeting with, often time don't have the time/take the time/want to spend the time to find deals like yours so you have a good offering, if he/she is interested in partnering with you on it.A mentor of mine told me it isn't uncommon for a 3 person partnership to be split evenly if one person brought the deal, one person is financing it, and one person is managing it going forward.