Hi @Lena Truong I've bought assets from AHP and Jorge Newberry is the principal and passes the integrity test with flying colors.

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

Patience, I believe, may be the best practice to recover principal.

@Jeff S.Speaking of recourse loans…https://therealdeal.com/new-york/2024/11/27/acres-goes-after-personal-assets-of-tides-equities-principals/

For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147While the above example is oversimplified, the concept is valid.

The lender has requested a 10% pay down on drawn funds (towards principal) at the time of extension.

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

Very good point on the paying down of principal. 

A simple source document review correlating the company's bank records of money in, investor principal owed out and total out for real estate currently owned would likely reveal a lot.

The note investor can set up a deal where the borrower deeds part of the property to him for cancellation of a certain amount of principal.