They had paused distributions in 2023.

When the tenant moves out and the funds are distributed either to the tenant or the landlord for damages, then the subaccount for that specific tenant has a zero balance and that subaccount is closed. 

They are late making any distributions.  

I am hopeful the next scheduled distribution arrives but hope is all I have at this point.

The general rule is: to anybody who was paid by you for services (work) or who received a profit distribution from you – if he received from you a total of at least $600 total during 2023.

If it isn’t repaid, it can be treated as a taxable distribution, which adds to the risk.

If you're over 72, you may have to take Required Minimum Distributions (RMDs) out of your retirement accounts by the end of the year - or pay stiff IRS penalties.

It is an advanced technique that requires expertise and being well funded.Also, once someone has received a notice of foreclosure, it shows on his credit report as a foreclosure and you can Not save his credit by buying the house before the auction.

.: Quote from @Theo Hicks: In ideal conditions:Pref equity receives higher ongoing distributions but no profits at saleCommon equity receives lower distribution and profit at sale (assuming their is cash flow left over after pref equity is paid and assuming their is profit at sale.In non-ideal conditionsPref equity may receive ongoing distributions less than pref, or no ongoing distributions at all, but the pref accrues.

@Brad Kanouse,I believe this is a duplicate of this post:https://www.biggerpockets.com/forums/311/topics/1210256-usin...But regardless, here is my answer:If you take a distribution from an IRA - it will be subject to taxes and penalties.You can convert your IRA into a "Self-directed IRA" and have the IRA buy the property, in this case you are not the owner, the IRA is.