In the situation you've mentioned, you get $55,000 back and are paying down principal while the property will, over the long run, appreciate.

Just do you research and homework and actually invest time and money into flying to those areas.I'm in Georgia now but except for my principal residence own no real estate here.

I have personally spoken to a dozen investors with varied time frames of association with NRIA including an investor who reached his contract point at 33 months where he could take all of his principal out of the current fund.

This puts your PITI (Principal/Interest, Taxes, Insurance) at $599.28 + 337.50 + 66.67 = $1,003.45/month.I am assuming you are using the tax number from when the lot was a vacant lot with no improvement on it.

Plus, you have risk of being a principal in the transaction as a wholesaler.One could (and some may say should), consider converting your presentation to motivated sellers to a listing presentation and not offer to buy it yourself at all.For example, with your managing broker's permission, you could get either a full listing contract and market the property properly, get your seller maximum dollar (whether that's to an investor buyer or owner occupant buyer).

Interesting how they use the house as collateral until you pay down 20% of the principal or squeeze the equity through a value add. 

Leaving approx $800 which I would throw toward the principal.

The the arrearages could be considered a deferred principal balance.

As long as you act as a principal in a deal and not as an agent you can bird dog all day long.

Threaten to write California AG to investigate principals involved in Trada, better yet, threaten to get the feds involved3.