In addition, I am hoping to understand the most severe risks that come with investing in distressed properties, and how best to mitigate these risks. 

I'd love to believe that we have an alternative to the paper we pass around, but we don't yet.In addition, did you know that your bank account can disappear or your electronic refund from the IRS can be hacked, and there is NO recourse?

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

i actually only invested an additional $23,000 i answered the question wrong

Additionally, you don't even have to lose money.

The standard rate is 3% of a loan, a good broker will never exceed their origination costs of more than 3%.Additionally, a competent broker goes beyond merely securing financing.

In addition to brokers, I would also suggest speaking to 1-2 regional banks/credit unions.

Additionally-Sleep a few nights in it.

You should also make sure that you do additional research on STR comps so that you have an understanding of their values as well.

Note, even though you may have a per-transaction fee or unlimited transactions, it looks like pretty much each transaction will still have some additional associated fees for things such as AHC/wire or expediting docs, but they seem reasonable.When I was setting mine up, I was told that the flat fee isn't charged until your first transaction.