Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

We aren't in "US is going to default and is an inherent credit risk" at 6X national debt to tax revenue ratio, but we are getting close to "let's be wary" territory for creditors. 

Secured creditors in order to take the property are to put in a motion to lift the stay.

This doesn't mean you cant reject an applicant for other reasons you typically would such as income, poor credit, or criminal background. 

I would add research your state's creditor protection laws and think about keeping an open ended line of credit if you need to deploy capital later

Hi Patrick,I am looking to identify hard money lenders and private money lenders, as well as seeking advice on how to begin funding the first few deals we take on (or if we should even use outside capital initially) My personal credit has been a 15 year battle (due to 2 divorces, multiple identity theft incidents, and most recently a breach of contract dispute with a creditor (they want me to keep paying them but not provide agreed upon services).

Really trying to make sense of all of this.Charging order protection shields LLC assets from personal creditors of its members, allowing creditors only to claim distributions, if any.

By using HELOC funds instead, or even a zero-percent credit card advance with a 4% transaction fee, they are effectively using the CREDITOR's resources instead of their own money to accelerate mortgage loan payoff (at a "cost" of a few hundred dollars per year).

I'm pretty sure if the owner filed bankruptcy the Trustee would have your claim to the income disallowed and since the owner does not have personally liability for the "debt" you're not even an unsecured creditor.  

the claim that you fixed their credit or helped their credit just is hollow. once in foreclosure their credit is trashed.. going to sale does not hurt it any more or less..