Dumb Debt also means that the owner takes on recourse debt and personally guarantees it instead of non-recourse debt or other people’s debt (OPD) or cross collateralizes it with highly appreciated assets with low debt to value ratios.

The scammer may promise to help the victim get out of debt or improve their financial situation, but in reality, they have no intention of helping the victim and are only interested in taking ownership of the asset.Once the victim takes out the loan, the scammer may siphon off the funds or use them for their own purposes, leaving the victim with a large debt and no asset to show for it.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

If it's worth $1.3 million today, it will be worth $3 million or more in 20 years, you'll have paid off the debt (or most of it), you'll earn at least $3 million in cash flow over those 20 years, and you'll have tax benefits.

When lenders calculate your DTI and your owned properties are breaking around even or a little cash positive from rents, do they basically look at those as no debt or even positive income to keep giving you more loans?

It takes time with court meetings, etc as a debtor or creditor. 

so i had zero debt or interest payments on it while it was being fixed up. 

I also use business lines of credit from banks, but for this banks definitely want to see revenue (usually 5-10x the amount of a mine they will give you).It is important to remember though that just because these lines and CCs are not immediately reported on your personal credit report, if you miss payments or default you are personally liable and the debtors will add it to your personal credit report.

Although we do have deals on the lending side that dont work but we are not forced into a position to take big loss's like we were when the banks were calling our loans.. this will happen in the DSCR world as all these folks are using same type of debt IE debt that can be called based on the terms of the debt or like you have seen with the syndicators that are talked about on BP max leverage bad debt things dont go right And you have cap calls or projects totally lost. 

Liabilities are common among tax foreclosed properties and are often the reason the debtor or heirs are not paying the dues.