If the Ensuing damage is also not covered, the total loss could be vastly higher.  

It also would take forever to recover the initial negative equity position.  

I am left feeling that working with them was a wasted investment and decided to cut my losses and move on.

They refuse to give investors the information they ask for such as who is the loan through, what kind of state it is in, and who are the GPs, LPs, profit and loss statements.

When an offer came in for 30 cents on the dollar, I decided bail out, so took a 70% loss. 

If I assume a 1.25 ratio, this scenario would allow me recover more capital than a conventional mortgage.Please let me know your thoughts.

BEST DECISION I EVER DID WAS MAKE MY WIFE MY BUSINESS PARTNER THIS YEAR FELT LIKE NEW BEGINNINGS LEAVING A OLD PARTNERSHIP AND STARTING A NEW ONE LITTLE  DID WE KNOW THIS FLIP WOULD BE THE WORSE THING WE DID THIS YEAR TALK ABOUT A HOUSE THAT WOULDN'T STOP SPITTING OUT PROBLEMS FROM SQUATTERS BREAKING IN , FROM THE CITY CONSTANTLY GIVING VIOLATIONS, WE EVENTUALLY TOOK A LOSS OVER 50K OUCH!!  

Do capital gains offset passive losses that the investor has, so someone really isn't paying a high capital gains tax as they thought? 

Understanding the market enables you to spot good bargains and steer clear of potential loss-making regions.

Hey guys, I look at the benefit of the LLC as keeping a loss from one from spilling over into other LLCs or your personal finances.