The appraiser determined the property had functional obsolesce, making it something that not many lenders would want to finance.

One more I can add is the note investor who thought that holding the note gave him the right to determine how the subject property was managed, with approval of tenants, leases, and maintenance contracts.  

This allows us to consider the real estate cycle and determine the optimal timing to sell.

Hey Hima,First off, respect for your determination to turn things around.

Let the reader determine which of the responses makes more of an emotional connection.Not saying that's what happened, but an interesting hypothetical... :-)

I think Chris makes a good point of determining the strategy - performing 1st position notes is always a safe "dipping toes in the water" type of note to go with. 

@Harsh PoshtiThis will be dependent on the area and I would recommend you perform a market study to determine which project would yield better results and if either is even viable.

Since it is in a phase known as price discovery where as there are no known levels of value until a top is reached, we will have to wait and see what the market determines. 

@James Mc Ree so glad you have determined this to be a good risk to return and invested with them.

Then, with that in mind, determine your mid and short term goals.