The note investor who thought that after the debtor was late with a payment he could just walk in and take possession/ownership of the property without foreclosure proceedings3.

Well you received reply's from the top heavy hitters in the passive game here on BP.choosing wisely is key as noted.. real estate debt can be a great spot for the busy professional.

Quote from @Levi Perl: Hi,Curious if anyone has what to say in terms of how to calculate which one is more worth it: to cash out refi on a Long term rental now at 70% LTV, and walk away with X amount of positive cash AFTER paying all debt, (X is a positive number and significant amount for me), which will allow me to potential get another long term rental and grow portfolio faster, or wait 4 months and cash out 80% LTV, giving me DOUBLE than X. 

However, many investors get around this with a debt service loan.

Quote from @Sam Epperson: let's say I come to an agreement with the seller for them to finance some of the deal. let's also pretend the seller owns it with no debt, and we agree to 5% down, 5% rate, and 10 year balloon. how are we drafting this legal document?

But like he said, f something goes wrong with ANY of the properties you have debt on, you might be in a pickle.

Before I give my answer I'm making the following assumptions- Your credit is decent, you have stabe income and make decent money; your debt to income ratio is relatively low. 

my SS deal is one of my participation deals were I provide the capital to the operator via a debt instrument then take a participation as part of the note agreement. 

I cannot qualify for traditional conventional for multiple reasons but the over 200 to 1 debt to income ratio is a primary reason.  

Have no debt.