Help with potential deal on lien/note/loan - apartment complex

[Joe Crupi]

Situation:

There's an apartment complex that due to some severe mishandling, was about to be foreclosed. Someone came in and loaned them the money to pay the back taxes and fees, charging hard money rates.

- Loan amount is @ $600k, which covers back taxes, fees, etc

- Appraisal, based on current market rental rates (property is not charging market rates), is over $7,000,000

- current understanding is there are NO other liens on the property

Here's my question.

If I were able to offer the complex a better loan deal, one that would get the other lender out of the way, what are my ways to profit off the deal?

- Obviously, the first benefit would be the interest earned and a lien against the property

- If they defaulted, would I get direct ownership of the property, or would it go to Sheriff Sale?

- If it went to Sheriff sale, is my profit limited to what was lent to the property, or would I get to set a reserve price and get to collect all monies received?

- If I set a reserve price and its not met, then what?

Thanks for help!