Check out this article that sheds light on how they come into play with this strategy.

I had a good friend when I lived in Napa and played golf with him frequently he was a Brain Surgeon and had the yipes something fierce could not make a 2 foot put to save his life..

Everything else is just mind games.

How the subscription agreement or paperwork you signed to do the deal would play a role in what you can and cannot do.

A lot of new constructions are more of equity plays than cash flow plays.

From there, you could do a cost segregation study on that property which will lower taxes for that year and potentially create additional carryover losses.Always options to keep reinvesting assuming the equity is there to keep playing the real estate market 

I have been through the BK route more than a few times in 40 years of HML ing.. and as Don states it can be just crazy what happens what the debtor will do what the BK trustee will do what the judge will do.. that all said if your position in the note is discounted enough probably still worth it. but in my mind to pay 90% and if there is not SIGNIFICANT upside I personally would not do it unless you have a repositioning play or something that no one else sees. 

Potential Equity is not skin in the game. 

Preference is cash-flow, but open to appreciation/equity plays as well.

I've even heard of GCs using auction type settings for returned items at Home Depot and Lowes for steep discounts.I've learned a lot about the GC game as I was up close to over 40 projects last two years and some went well and some did not and when they did not it was all Contractor related.If a GC isn't sourcing cheap materials at the same time milking the hell out of his 150-200 per day workers, then you can find yourself eating into your margins real fast.