You'll want to get an authorization to release info and a power of attorney from the seller/borrower so you can manage payments and payoff to the lender.

This forces the borrower into negative situation which might be viewed as forcing foreclosure onto a borrower.

For rehab funds I presented an offer to some family members to borrow 15k at terms which will all be paid in full at settlement.

Especially out of state.Although the income of the property is key they do look at the borrowers net worth and liquidity as well.

The issue, as @Eric Michaels says, is that you are trying to borrow 100% of the project and then some.

If you are going to buy an existing note (i.e. stepping into the shoes of a prior lender) you'll have to research the property, the borrower, the HML, and the associated documents.

You need to make some calls to find out if they will do those at all on an investment properties.If you use that money for a down payment on a new property, be aware that the lender will ask you if any part of your down payment is borrowed.

If you give me your money to put to work, I will charge a fee to do so which may make the loan cost more to the borrower.

Or the borrower hired a lawyer and got the lender to back off.

The idea that a balance write off from a creditor may become a taxable event according to the IRS for the borrower is not new.