You don't mention if that's the case, but I thought I'd bring it up.You also won't be able to recognize any loss on the sale if that's the case.

Jay,You mentioned total loss on syndication deals. 

I was initially very pleased to learn that all had been able to purchase multi family properties; I was not to pleased to learn that they all “wanted out”, but felt they were “upside” down and would have to take a loss.  

Cut your losses the first time they miss a payment and start the eviction process.

That loan will cost you around $800/month for 30 years.I think this improves things, and your only loss would be the cost of the equity loan and the payments you've made so far on your IRA and credit cards. 

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

A number of things seem like memory loss. 

From 2nd Mortgages to 1st MortgagesWhen I started, PPR was buying primarily 2nd mortgages. 2nd mortgages is essentially loss mitigation (helping the borrower get back on track and stay in their home).

What you have is a few guys that have way over 100 years combined experience with investors and investor deals and we know what it looks like when investors are at very high risk of taking a 100% loss..

Legal consequences and potential financial loss that could have been avoided with timely updates.2.