I also noticed you have two emails on file with us, and you sent this from your alternative email, which may have caused some confusion.2.

The most likely scenario is that you refuse to pay him, or make him an offer he doesn’t accept, and he files a mechanics lien on the property. 

This is why you need to make sure you review your file prior to even getting the hard money loan because what if you do not even qualify for a conventional loan then you'll have problems and might not have a net benefit exit strategy.

The process is getting allthe information together like the 1003, credit authorization form, bank statements, income statements etc. they will underwrite the file and confirm the borrowers ability to repay.What state is this in?

You also have to file UBIT taxes and most CPAs don't even know what that is.

They will have it on file. 

Today was a month since notice so i called local court and figured out paperwork to file. while looking through bank statements i realized that he has been zelling me random amounts for rent since august and i learned today that if he makes even a dollar payment it voids the eviction process because i "accepted partial payment" according to some regulations in arizona.

If they have anytype of real estate license, you can also contact the state's Board of Realtors and file a complaint.

@Sharad BagriCalifornia is generally more cumbersome than other states when it comes to taxes and filings.

I made myself take QB classes and struggled for years, my CPA said what I am doing is about 80% correct and it was a ton of work to clean up the files. 80% is not acceptable for me when it comes to IRS stuff.