So just recognize this could be lengthy process if they default.If it was me, I would take it as a non-refundable deposit with a letter of intent and a purchase and sale agreement that the money is a down payment, is not refundable and they must execute the closing by a specific date otherwise they forfeit the money.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

It's important to have good advice so you can recognize a hiccup vs a gut punch!

I recognize capital calls are generally disliked but it might be the best way for the Sponsor recapitalize the deal.

I recognize that my expected return is different than many of the members of BP, but the most successful of investors do not consider a loan on one asset to purchase another asset (whether it is stock via margin, home equity via HELOC, borrowing from 401K, etc.) to be the same as leveraging the value of the financed asset in the financing. 

By calculating this, you temper your ability to perform and are able to recognize viable opportunities.

This discrepancy was not previously recognized by myself or the mortgage lender until I received correspondence from my lender indicating that the insurance policy holder's name must match the property owner, in this case, my Ilc.

People should recognize things never get cheaper (which is why now everyone should roth 401k that savings because I would rather pay taxes on it now than in 30-40 years)... 

If not, I assume the LLC would then recognize those benefits, but I'm not sure how.Anyone have an easy way to help understand this?

It's unfortunate that the deal fell through for your client, but kudos to you for recognizing an opportunity and making it work.