He could foreclose and recover the property. 

It is called "loss aversion".We are conditioned to be more fearful or a loss than hopeful for a gain.  

And for example there was a Crowd Street deal (Nightingle) where the sponsor omitted losses from their claimed track record (and ultimately was fraud...they never even bought the claimed property).And there appeared to be some difficulty or confusion with obtaining the full and complete track record ( including both realized and unrealized deals).

It is widely recognized as a loss leader within the industry and those who are successful normally have a complimentary business such as a brokerage or a construction company that performs complimentary services.

Start with a small deposit, to minimize your potential losses.

Apparently they're still looking to recover revenues lost from the Hoover Company. 

We've never recovered a thing, although I hear one guy got arrested.STR could be a disaster for you. 

In this case, am I still able to count the inspection fee as a capital loss, even though this expense occurred before I rented out my first property?

Which means, if you’ve structured your taxes as losses for the last two years odds of qualifying are slim.

I'm having fun, but there are a lot of other reasons, I'm doing this investment that you probably don't have, can't get, or can't take the potential loss.