Yes, the settlement checks will start flying soon. 

I paid him half and half went to the debt. 

Utter blasphemy, only "unsophisticated" investors buy in cash.An experienced investor once told me "why use my cash, when I could just default on OPM" I know its not popular thought on BP.. and of course ramp up requires it unless you inherit a ton of dough but as we age out I sure like free and clear and no debt.. just the hassle factor of having to make payments :)

The total deal with debt was above $10M but the total equity in the deal was around $4M. 

First one to pay off both Bank debt and get back initialcollateral.

They're the ones working with those agencies on a regular basis and have the best referrals.As far as recovering the debt, try leveling with the tenant as much as possible so they grasp the seriousness of being sent to collections.

I don't anticipate things to be that bad this time, but the value dropped over 25% back then and we are unsustainable at the point of the affordability cycle we are at now.You basically will be buying a monthly debt, speculating the value of the property is eventually going to go higher than you bought it for.

Quote from @Kevin Sobilo:Monthly Rent + Monthly Debt Payments <= Gross MONTHLY Rent * 45% Obviously I made a typo.

The Seller needs $200k now in order to get out of debt.

I doubt many are going into credit card debt or if they are that's kind of crazy.. as this part of real estate has no smoke and mirrors generally.And I suspect because most of these folks are doing some sort of PPM and need to deal with accredited investors.. that separates those wanting to start to those who have already had some financial win's or experience and just looking for a new avenue..