And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

But thats part of the being OOS and as I gain more experience and I better team I can minimize that.

I really admire that you've focused on such a unique niche that doesn't get much attention.

On our recent fund when we sell off the performing notes in year 5, that will be a capital gain from the difference from the adjusted cost basis of the assets to the net sales income, but the income to our fund members from the loan payments up to that point will be ordinary income. 

This risk here far outweighs any small gains in ranking. 

There is realized gains & profits, and UN-realized gains and profits.

Beefing up your portfolio holdings  (even if your individual ownership in the deal is modest) is one of the best ways to gain credibility.

We lived in the property for 2 years and rented for 2 years to tenants, so by selling now, we ensured that we could avoid capital gains taxes.

Here is what I would do:I would still close on the property but send a letter to the sellers broker and the seller along the lines of below (note I would have an attorney write it and send it):It has been brought to our attention there was a $15,000 insurance claim on the property.

I have absolutely nothing to gain here whatsoever so I'll bow out of the conversation.