This is just the start of a larger decline in a company raising money from investors without proper SEC fillings that is starting to not pay investors back.

Or they could never get to the latter, because they never had the beginning characteristics which include the former to develop properly. 

Without proper boots on the ground, your property will never get the proper love & respect it truly deserves (I get it.

If an asset is throwing off a certain yield that is not commiserate with it's risk, then investors will then begin paying more for that asset, thus decreasing it's yield....or start paying less for the asset which would increase it's yield, until it was at the proper risk/return rate to produce the yield that is truly reflective of it's risk.The problem is novice real estate investors get the risk/reward correlation backwards.

I've built a $18M RE portfolio without ever having to do a syndication.I hope I answered your question properly!

. - Won't work unless you REALLY know a market and have the proper connections!

This would be the proper argument for explaining why you should not invest in RE for primarily, but really only, cash flow.It's a store of value against the dollar, and utility for the people. 

Do you have the Capacity/Ability to close, do you have the Character/Credit to close (including relevant experience), and do you have the liquidity to properly provide enough collateral (are you injecting enough into the deal).

In our case this was an annex built without proper permission, which limited the m2 that the bank would value the property against, and limited to how much space we would be legally allowed to use.

It’s so comprehensive that I’m compelled to give you a great answer, but there is so much to unpack that a full proper answer to every question may take longer than I have tonight.