Balancing business interests with empathy and understanding can be difficult but important.Overall, while the process can be daunting, being well-informed and prepared can help mitigate these challenges and lead to a smoother transition.

In that vein, my general preference is to keep these as hands off as possible - whenever possible be or find a lender rather than an equity partner to avoid the deadlocks, disputes, and danger that comes with equity splits.  

Each has pros and cons depending on your goals and investor appetite.Due diligence: Be meticulous with underwriting — investors want to see solid numbers, realistic projections, and risk mitigation strategies.Communication: Keep your investors updated regularly with clear reports and transparency.

Some of the risk will be mitigated by proper legal structure.1.

This could be mitigated to a degree with pre-funding, but from what I have seen the "pre-funding" is more largely correlated with debt product to grant investors interest from day 1 and is less prevalent with equity investments.  

You need to work inside the lending and servicing department at a bank to learn and know what really goes on and triggers the situation, and dangers you are proposing. 

Just recently, city council passed legislation requiring landlords to accept the security deposit in installments - severely limiting your ability to mitigate against potential problems. 

# 1 reason is wildfire danger. 

You have several ways to mitigate ther risks of debt - robust underwriting, adequate reserves, a disposition strategy, contingency funding, etc.

That’s true of all investing but liquidity, granularity, and volatility require more strategy to mitigate in REI.