Based on the information provided, you can only claim a capital loss when you actually sell or dispose of your REIT investment, not when the REIT simply returns a portion of your principal.

So in lieu of responding directly to the resident(s), I figured I'd touch base with the BP community to provide some insight.

Unless you are based in a community property state. 

So you went based on pricing.3.

BP COMMUNITY I’m Christopher Espinoza ,I'm based out of Long Beach, CA and I’m passionate about helping homeowners in Detroit, Mi.  

If you get 100% of the purchase price covered then you should have sufficient funds for the closing costs based on what you're saying. 

I've been giving lots of thought buying a lot for build and sale of a SFR, and would like to touch base with like minded folks.Thank you,Shawn I was in the 6 month program and paid $5000.

He was a realtor based in the Midwest (I think the greater Chicago area) and was talking about off vs. on market deals and the importance of choosing equity over cash flow. 

Please let me know your thoughts… or if I am way off base on what you were trying to accomplish.

Once you have a pipeline, you can refine your criteria and adjust based on what works best for your market and strategy.