Some days I know how Red feels... 

The rental income minus the mortgages has me in the red around $450 a month.

Too many red tape bureaucracies, local staff challenges, building management issues.

In followup to the part in bold above, are these investors purchasing the right of redemption from the foreclosed party in order to exercise that right to "snatch" another investor's deal?

Red state.

I was getting a lot of pressure from the prospective tenant to move fast which raised some red flags. 

No red flags here???

This way, you will eliminate the custodian completely with its fees, red tape, etc.

What type of red tape are you referring to?

This thorough investigation helps identify potential red flags and ensures that the sponsor has the resources and expertise to execute the project successfully.Financial AnalysisExamine the sponsor's financial statements, funding sources, and capital structure to evaluate their financial health and stability.