I’m in a similar situation considering investing in fund 3.

Just keep in mind each persons situation is completely different and small things can make a big difference in rates, fee's points, terms, etc. 

Depending on your exact situation, you could likely get something closer to 7% and make these numbers work a little better.  

I am in a similar situation.

Those situations go bad more often than not, costing you money and the friendship.

Dan,It sounds like you and I have been in similar situations with Safeguard non-performing notes. 

I believe the code says "if a veteran holds legal title to a property secured by a VA loan but does not possess equitable title, this situation is considered 'not a disposition."

The forums are often more for questions and help in situations or deals. 

While institutional lenders would probably need a number years proof of collections before considering the income from the wrap, private lenders, such as myself would look upon the situation more favorably.  

The situation you are ultimately trying to avoid is the one where: the borrower defaults, you start foreclosure, the borrower fights the foreclosure and says they didn't understand the loan / could never afford to pay it / you didn't follow the consumer rules, etc, then the judge asks if you followed those rules and you can't show that....