I would definitely check Dunn and Bradstreet for any open lines of credit, liens, judgements and the like. 

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

We do not use the credit score, we use the information on the credit report to gauge how long they have lived at addresses and what kind of judgements they have.

Seems to be there was a bad judgement on the rehab from all parties.

You could also try looking up money judgements filed against local businesses at the magistrate level and target them with direct mail or driving for dollars. 

We Normally put steel posts nearby so no one runs into them.In the third picture one unit is just in front of the picture, then a second unit is at the far end on a post.These can be set off by deep fog, rain or sleet. 

There are many ways to attempt to collect your loss:  file a small claims complaint against them; get a judgement so you can garnish future wages/bank accounts - and the judgement will be recorded in the credit bureau. 

They they get a big fat default judgement against you. 

Lots of flooding and rain.  

Because, the lender is entitled to know what risk they are taking with their money.That being said, on seller financing, if someone gets sued and loses, the lien/judgement can be filed at the county, (it's not automatic, someone has to prepare and send the paperwork) which the bureaus will pick it up on producing a credit report.