You have no more at risk than you do in your own home (where you probably have more equity.) or your own car (where you probably have more risk.) and we won’t talk about if you have a pool or a dog. 

just to be blunt, that is expensive and high risk. 

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option. 

Cooperative Assignments offer a simpler, more efficient path to profits compared to traditional wholesaling, making them a great option for investors looking for a practical way to get started without risk and $0 cash upfront.

It may include origination fees, inspections, and legal fees, so I’d ask for a breakdown.Your biggest risk is the 70% loan-to-value (LTV) requirement.

Martin said about flips as a way to turn $60k into $120k faster (but with far greater risk.) 

@Sean Overcrest Transferring the property to an LLC may help avoid property tax reassessment under California’s Proposition 13, but it comes with risks.

********************************The basic idea is that of you can make the same return on Treasuries with little to no risk, there is no incentive to buy real state.Some very large Hedge Funds are selling inventory at a loss, below what "current market" is.

ACTIVE real estate investing is an ENTREPRENEURAL activity, which means RISK - REWARD.IF - you’re happy with passive type lower risk investments, your spouse doesn’t have to “be your partner” - as long as they’re comfortable and cognizant of the risks.If you dream of an ACTIVE real estate investing career - it may work only if your spouse is SUPPORTIVE, and willing to accept the risks, which may include the possibility of being wiped out in a 2009 style depression. 

You will want to evaluate risk but don't let it paralyze your decision making.