Scenario #2:  A family facing a foreclosure in a few short months, has the decision to sell their property sub 2, to save their credit, or destroy their credit by allowing the foreclosure to proceed.

Did you use a line of credit or a cash out refi in advance of your search or after you had a deal in your sights?

I’m not an attorney, but have done my share of research on trusts, and have read a lot from Asset protection  Attorney Garret Sutton (Rich Dad Advisor) he states over and over that Trusts provide zero asset protections, and often states that “some promoters” will pitch trusts for protection from creditors and suits, but the don’t hold up.  

About 1/3 of my tenants either bought a house with the $8k credit or consolidated and lived with family, friends.

So basically... both options destroy your credit, or at least your ability to borrow/refi. 

Bad debts from older types have usually been down this road before, they just live with the matter and you're usually not alone as a creditor, then they go see their BK attorney.

I tell them I don't want perfect credit or a certain credit score, I am looking for bankruptcies, repos, evictions.      3)   first month + one month security deposit - I make sure to explain why I think a security deposit (as opposed to a non refundable move in fee) is beneficial for both parties and everyone assures me they don't have a problem with a security depositPotential tenants A took an application and texted me the next day, asking if they could email it in.

Eventually after time  and knowledge they will get approvals and build credit or go the secured credit card route at first.The PAID option to speed up the process.

A contractor without the credit or capacity to get to their first milestone payment without assistance from you might be a problem child.From a contractor when a customer doesnt want to pay a deposit , this is a BIG red flag .

Not only that but you are buying preferred equity shares and we have no leverage so you are not at the bottom of the capital stack.When companies issue unsecured bonds or have one company holding assets and the other you invest in as unsecured assets realize you may be last in the capital stack as unsecured creditor.