I would bet the sponsor does not have money in escrow or an insurance/bond to cover the losses.

I took a $400,000K HELOC from my primary residence in Marin County and purchased eight properties in Rochester NY - mix of a duplexes and SFR's on the theory that California property served as a kind of "stock" and that I needed some "bonds" in my portfolio.   

Hi Folks - I'm interested in learning more about and potentially investing in tax-free municipal bonds.

It's possible to get into a small multifamily and cut your teeth with a low down payment mortgage.If you are serious about long-distance investing, start with @David Greene's book found in the book store. 

I put the first mello roos in nevada county 11 million bond issue.. we had 480 lots  built the first 110... all presold ... the earth quake the war and we did not close a one... it took 20 years plus to unwind that deal.. although I was up there last summer and it was all built out  so someone did OK with it.I have 4 subdivisions going now biggest is 27 lots  so not doing anything major and trying to get in an out in 12 to 18 months but I hear ya..

., and then advise each resident of what they must do to clean it up....No lease language = no teeth to require, but many might just need to understand what is causing the problem to comply.Good Luck!

It has allowed me to cut my teeth in investing near where I work and play as well.

Hard to go wrong with 5% yield on 1 year treasury bonds.  

I own a newer construction company in the Los Angeles area and we are licensed and bonded.

I  have full teams all  are licensed  all are bonded all have references .