You aren't required to offer a loan mod prior to foreclosure.

They are asking $375K but not getting it - so not quite $20k underwater from asking but they're offers so far are around $350k and lower.

While it may not offer as much diversification, at least with a syndication, you can review the specific merits of that particular deal.Also, the fund operator typically has different motivations than the syndicator.

The city offers a mix of high appreciation potential in certain areas and solid cash flow in others.

The offering would be at 490 units at $1000 unit

How I would go about it is bring a deal to someone ( a friend or colleague) that I knew had money, offer them the terms I have in mind and continue until I find one.

In return for excellent service I'll be offering repeat business and I'll happily provide referrals to my existing investor network for those top performers. 

All offers and contracts where you act as the principal also need the disclosure.

Last but not lease, start writing offers and don't get stuck in analysis paralysis. 

Even if they offer a 721 on any property, I would recommend looking elsewhere.