@Bjorn Ahlblad Good point, although I'm failing to see what the potential consequences could be, maybe I'm not thinking beyond what i saw. 

The NoD must clearly state the missed payment, cure period, and consequences; consulting an attorney for your first default is a smart precaution.

Second, I have a question about REPS status in a longer term sense.The primary benefit of REPS status, as I see it, is to take passive real estate losses, usually from depreciation and accelerated depreciation via cost-segregation, and use those losses to offset active income, reducing current or future AGI and tax burden.I’m clear about this benefit, but what I’m unclear on is the consequence in out years.For example, if I put $100K into a multifamily syndication, and the syndication does a cost seg, resulting in a $40K loss, I believe that a Real Estate Professional could claim that $40K loss against their other income and reduce their AGI accordingly.

You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.Good luck. 

This is another example of why it’s so important to have a good team of experts around you to offer options and discuss the consequences before making any decisions.  

Investors bear responsibility for doing their due diligence on any investment they make - or being willing to suffer the consequences IF the sponsor/syndicator did the following and possessed the following 1.

You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.There are over 20 real estate accountants on this site.

I know many think I'm too strong and idealistic on this stance, but it's how I feel - I can't give my money to someone who has no or very limited consequences personally if the investment goes south.- Because of these incentives, only integrity and care for one's long-term reputation hold syndicators back from just raising as much as possible, as often as possible, and deploying the capital as fast as possible.

Owner’s Draws and Tax Implications: Taking owner’s draws to recover your initial equity is possible, but this can have tax consequences.

Especially with the obvious consequences of inflation and the money creation we are currently experiencing.