There is a Fund of Funds involved.  

Like most things in real estate, a lot depends on the circumstances of the individuals involved and not just the numbers and figures.I hope this helps explain my thoughts, and I apologize for the lack of clarity when I defined "arbitrage".

With $50K—$100K, you could fund a rehab and refinance to free up most of your equity for the next deal.Cons: BRRRR often requires more hands-on involvement, especially managing contractors and timelines, which could be challenging with your demanding job and family obligations.

The borrowers could be paying their mortgage to scottsdale or scottsdale most likely sold the loans - when you invest in a syndication you have rights to manage the specific assets unless he gets a court order which there are also many other investors involved. 

I would also encourage you to get involved in networking groups in the Chicagoland area as well as listen to the straight up Chicago investor podcast.

Did you ever have to get a lawyer involved or did it not go that far?

Steps involved:1.

Steps 2 & 3 would be the main contributions of a Civil Engineer who is involved. 

All of those can be seen in the thread linked below.Who is Bob Stevens AKA Bob Prisco and what's his involvement in Cleveland?

This may not be a worthwhile pursuit if you don't fall under that category because there is some added risk involved.4.