With the online platforms you are extending a huge amount of trust and it seems that your only "collateral" is that they are very motivated to succeed and protect their reputation.  

So bottom line is that TICs have, for the most part, no debt associated with them so it is typically not a good solution if you have a mortgage to come along with you on the exchange but of course if you can find a lender to fund the debt by collateralizing an alternative investment, then you are good to go. 

The due on sale clause may not be used when a borrower transfers collateral as part of an estate plan.

The lender wants collateral ( the property) on the loan to get the money back if you stop making payments. 

The reason: it takes 6 weeks to 3 months to get a sheriff's deed, so the collateral that the lender would seek isn't feasible until you get that deed.

I have no problem with it, as long as there is plenty of equity, a yield that I want & solid collateral.

The biggest things in this  scenario is that the borrow is not current on the first so they very likely have little or no intention of staying in the property AND they are massively upside down so there is no reason to expect anything to come your way in a FC.This is one reason I like first position notes, figure the value of the collateral vs. the costs of the Note + FC + holding cost and you know your worst case scenario.  

You can always pledge it as collateral for a portfolio loan latter but you will have more equity when you do.

Yes, you have it right as to NPN.You might try to look at seller financed notes and simply fund a new loan to that note holder taking that note as collateral, this will put you more into a hard money lender position and registrations can be simplified at that level.

Buying a note, from an institution, you won't unless they offer it along with other to be sold, that is not a trustee sale, a trustee sale is a foreclosure on the collateral, the property.If you want to buy a note, a single note prior to or in lieu of foreclosure, you will need the borrower's consent.