We won a Defamation Lawsuit against a client withsimilar circumstances as your situation.

This is illegal in NYS, we have looked this up and did  significant research on this and we have a law suit against them in regarding this. 

I was reading a lawsuit of one where this happened where the person was getting a 40M LOC and had to put 5% in for interest reserve. they took $8M from their fund wired the money and never got the LOC.

Per Bornstein law in this article: https://bornstein.law/the-stench-of-lawsuits-over-oakland-tr..."

@Robert Morris it can work - until it doesn't via a lawsuit.Challenges:1) They are NOT professionals2) They are not licensed, so may cause you legal headaches3) They won't have insurance, so what happens when their actions lead to a lawsuit?

If you fail to follow the rules, you may open your personal assets to a lawsuit.

The primary reason why people form a company is to limit their legal liability from lawsuits.

you need a judgment first, so first you would need to file a lawsuit to get the judgment then the collection agency will take 1/3 - 1/2 of it. so in reality its not really worth it.

I also look for lawsuits and see what happened in them.

Any list you can pull for a few bucks has already been hammered by hordes of investors before you.Not saying this way can't work, but I recommend a different path...I prefer to focus on sellers who have a reason to sell but who require some effort and skill to identify.My favorites are #TiredLandlords, namely owners who have filed an eviction lawsuit against their non-paying tenants.Many of these folks are through being in the rental business and are open to hearing about a way out.Even better, #TiredLandlords are ideal candidates for seller financing, since they don't need the sale proceeds to buy another house, PLUS they are already conditioned to receiving monthly payments over a period of time.