If you had them drafted by an attorney (probably not since it's at usurious interest rates but you never know), there could be a provision in there for what happens if the loan is deemed to be usurious (i.e. interest rate gets automatically reduced to lawful rate and excessive interest collected gets applied towards unpaid balance of principal). 

@Brent Coombs  Absolutely using sold comps, maybe to the point of excess sometimes...

Or is that too "risky" that the seller would just kick you out the door and you loose any shot at it? 

Apparently, in 2009 a bunch of lenders were feeling the burn of loose or nonexistent underwriting guidelines from years prior and were looking to correct those mistakes.

Note you win some and loose some though.

I feel like I am loosing out on this. 

However if they just want to invest excess capital a house flipping business is NOT a good idea.

I'm afraid layer costs if HOA looses will come to HOA members pockets anyways..so doesn't make to much sense.

Cut them loose and start over.

When combined with the appropriate use of leverage, you can supercharge your returns in excess of 20% right here in the local market.