However if you do It might mean both a loss due to the note being uncollectible or even go to jail for not haveing the apropriate license.

A free market is a system of gains and losses.

But yes, payback period is considered by business for any investment and I stated that myself.Any business runs on profit/loss income statement (very important) but also balance sheet (assets/liabilities).

If it gets harder to evict tenants, landlords will require higher deposits and rents to make up for those potential losses.

Since the beginning of Q2 2014, the average growth rate for industrial-using employment in Los Angeles has been -1.1% per year, representing the average annual loss of 6,824 jobs.

I get an email informing me that one of the investments went bad, the company had to foreclose on the property and that I can expect an 87% loss of my total capital on that investment. 

The IRS in its Passive Activity Loss Audit Technique Guide published a sample Activity Log.  

Alec,From an Insurance perspective, ask the current owner to get from their agent "Loss Runs" for the past 5 years.  

The goal of any insurance company is to minimize there losses. 

Or one who assumes the risk of loss prior to settlement?