What is the security the lender has on these deals? 

I've had great success working with out of state investors such as yourself utilizing the BRRRR method here in Memphis. 

For example, maybe tenant couldn't pay rent one month and landlord agreed to use security deposit for rent.

Purchasing 4 week Treasury Bills is a very low risk method to help you stay ahead of inflation.

And stepping outside that box is a risky thing these days.So you'll need to watch out for that as well as the extra level of protections necessary to secure the property for you and either provide a profit incentive to the unrelated party or protect them from a taxable event.

But if we really wanted to win a certain deal for whatever reason it's a great method. 

If you are under value you should NOT reduce your rent.Good tenants are typically good pet owners.In our state we can accept a pet deposit (which I make refundable) and we can charge pet rent.I would keep the rent the same, lock them in for another year and offer them a pet addendum with an additional security deposit (100% refundable) and some pet rent.

I have other developers  that build high quality and are very thoughtful and methodical about the type of tenants they put into a retail center.

It would be great to share some creative methods that have been advantageous in the past!

Many people choose to go the cash method route because it is much more simple, but there are drawbacks to using either method.