There is a lot that goes into it such as:Are the LP's debt or equityDoes the fund originate or buy on secondary marketWhat lien position does the fund buyDoes the fund buy performing, non performing or bothHow is the fee structureIs there a B-D involved What is the fund structure (SEC compliant or exemption)

Ive got property paid off already but even with property as collateral still debt to ratio is a problem.My question is what can i do to fix this..work off to pay the debt or consolidate?

Further I have seen public records onapplicants whose report said no evictions found, but public court records showed 11 court actions within the past 13 months for  "warrant in debt" or "unlawful detainer", but no convictions because tenant paid before the court date. 

If you have other debt or savings goals, such as saving for a down payment on another property, it may be more beneficial to prioritize those first before making extra payments towards your mortgage.

Sometimes there is a capital call, but the GP is able to add debt or borrow more money. 

IRS gets paid in your scenario.If your seller doesn't want to cooperate that is a problem.With the discharge, in effect the lien is "released" from your property but not from other property owned by the debtor.

Also be sure to check that the servicer is licensed in the state where you own the debt or plan to own debt.

You could either complete the renovations with a short-term bridge financing deal and then refi into long term 30yr dscr debt, or purchase straight-up dscr and finance repairs on your own depending on your budget constraints.I'm also located in Middletown, CT.

I don’t know why you’re concerned about the buyers financing 100% of purchase price - there are many buyers who don’t want debt at all, are willing to forgo the benefits of leverage for the safety of no debt, or just have a bundle of cash and not many places to invest it.  

They're essentially companies whose main business is investing in real estate equity, debt, or a mix of the two.