It is a HUGE bummer as an agent to write up an offer to go to a junk property (happened to me last week) to end up pulling out.

Earlier in your post you shared that your friend planned to pay the contractor invoice but at the end of your post you ask whether your friend should pay the invoice in full.....and this is after selling the property and presumably being recapitalized. 

If they understand they need to leave and discuss honestly what they can do to make that happen then you are both working to the same end.

I’ve been coaching new investors for a while and many lack funds to get started but find both the lack of knowledge, experience, and funds, often derails them. 

I'm curious to dive deeper into the Santa Fe market and would love to learn from those with local experience.

Not only is it a costly and hasselsome process to establish such, but at end it's an association of 4. 

If you need someone to do more than guest communication and I can guarantee things will come up, at the end you will need a PM.

also there is a client recovery fund that most states have that folks can make a claim to the state but again generally a rocky road to go down and not a lot of comp at the end..

Instead of losing 55k they will probably only end up losing $25,000 - $30,000 What made you interested in investing in this type of deal?

These guys are having fun because there are a lot of scammers and gurus out there selling LLC creation services and Wyoming Trusts and Cook Islands Trusts and if you believe all that b.s. you will end up needing to cash out refinance soon in order to access that equity in order to pay for all their services plus an accountant to keep track of the mess.