Put aside if the owner of the home is a family member. 

Over the past 10 years, he and his late wife poured their hearts into building this home (with permits, of course).

Eric,, I think why people go for the fund model is the idea that they are spreading their money into multiple notes being held by the company.. while in theory this is great but as you noted you don't really have any security compared to being the beneficiary of the debt instrument IE debt is in your name. 

Hard Money is a loan that is 100% based on the value of the collateral.

We have two properties in SLC area and manage from out of state.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

I would also purchase the property and not the LLC unless you are a seasoned investor with a good attorney.

I am trying to hire a licensed REA for my LLC to perform occasional open houses and move-in/move-out inspections since I am out-of state from my rental property.I have the REA identified, now I just need to know the steps to creating a contract for them and me to sign.

@Jerry Tello I should have mentioned the laws and how they affect your returns vary tremendously from state to state, and sometimes county to county.

Summary;  95% of all pre forclosure owners refuse to even talk about selling inspite of the empending auction.