Especially when hard money lending is on a time crunch, every hour counts. 

I also invested in a syndication for which I received my first K-1, where box 2 shows a net rental real estate loss.

As you dive into REI learn seller financing, sub2 Syndications, even lease option strategies.  

An attorney can give his opinion as to what the odds are of the different ways a legal dispute can play out, but it’s the investors decision based on a cost/benefit/ risk analysis to decide how and of to proceed.There’s no way for anyone to render an opinion about what you “should” have done without (1) complete information as to the property being purchased and (2) complete information as to the risk tolerance and financial makeup of your investment group.Here’s my advice - don’t second guess yourself based on opinions of people who (1) don’t possess “all the facts” and (2) probably never acted as sponsors of a syndicated investment.  

What groups are out there that lend to practicing Muslims and honor their financing restrictions?

It's not "no-questions-asked" lending, but very close...Happy to help you strategize further!

They pressured us not to make loans to investors and, all the banks I worked for, were really tight on their investor lending to the point that they only did it for strong clients that might do a deal on the side.

Just like I disclose to all that I’m a hard money lender and syndicator, and reiterate that in posts in which I offer an opinion in those areas, and a @Chris Seveney does the same for note investing.  

How Do You Identify the Best Real Estate Investment Opportunities for Private Money Lending?

Delta of offered rate vs traditional lending for investment2.