Please advise how best to approach this situation.

Please advise

This is what I advise my realtors on how to do due diligence on offers with preapprovals:1.

The short sale real estate agent should be able to advise you on all of the loss mitigation options and laws specific to your state and help you with each option prior to listing for sale as a short sale and trying to liquidate the property.

I always advise to run a business for 3-6 months without an entity to see if it something you are making money in and something you want to continue doing.Once you have 3-6 months of activity, you have more information to provide to an accountant regarding income so he can provide suggestions on entity type.Best of luck

Buildings are the same age.Is it possible that the insurance brokers advises the insurance companies to do those inspections?

They have to present the offer whether they like it or not.On the other side of the coin, the Realtor is probably advising their client that seller financing incurs more risk to the seller.

Especially ones that are tax advisers. 

I am a hard money lender and need advise if an unsecured loan I made through the Solo 401k defaults and is uncollectible are there tax write-offs as a result of the uncollected loan?

If you know you want to invest in Real Estate, don't listen to those who advise you to invest in stocks.