Sellers tax liability could be less selling at a discount.If you have a default you will have any deficiency judgement, if allowed, limited to your purchase price not the upb.

If some type of worst case happens to one of your partners, you don't want their creditors or judgements to come against your ventures.(1A) If they are happy with just getting a certain return over time that's closer to a hard money loan and structure it like that with a promissory note.  

Somewhat against my better judgement, because I still think you should have taken earlier advice.

Generally, how variable/judgemental are the commercial real estate valuations?

A mechanic's liens starts out as notice of a court case and then has to be perfected and turned into a judgement by the courts.

The bank issued a default judgement for an amount which still leaves some equity in the house, but it is set to go to auction in two weeks if the balance goes unpaid.

And in typical IRS fashion, there are no hard and fast rules on being a dealer, just a judgement call. 

Find a new one and cut your losses.Ask your attorney if it's worth pursuing a judgement for the back rent.

It is not an actual document but more of a “concept” or history of a property showing all deeds, judgements, leans etc. recorded against property.

You will still need to collect on your judgement.