I would think in most situations the original owner is in financial trouble, probably delinquent on their mortgage and facing foreclosure.

out of sheer curiosity what is the collateral for investments.. are they cash flow assets..

Assets identified in this study include:Appliances: Dishwasher, microwave, oven, refrigerator, garbage disposals, rangesInterior Finishes: countertops, ceiling vans, vinyl plank flooringFurniture and Fixtures: shelving, built in cabinetry and decorative light fixtures, blinds, shuttersSpecialized Equipment: Electrical systems and specialized wiring, television connectionsSecurity and Communication Systems: alarm clock outlets4.92% of the total depreciable basis was classified as 15-year class life.

One of those “safe” assets are US Treasury bonds.

@Manoj Mathew Is this allowed in the PPM-legal documents that your funds can be used for different assets/projects than were defined? 

I am a firm believer that if someone raises money they should have some sort of experience and also financially have a strong foundation themselves.

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

& how you become financially free is by letting whoever your renting to (I'm guessing that was a step also?)

For over a decade, I’ve focused on multifamily acquisitions and asset management with firms ranging from small boutique offices to large syndicators.

It’s owning high quality assets within areas that have a high barrier to entry so that asset appreciates over time as you pay debt down.