If it has not yet gone to the sheriff's sale (trustee sale, etc.) then its still owned by the borrower. 

I borrowed 20% for the down payment from a family member at 5% for 5 years.

Things are perhaps different on your side of the 49th, but why would borrowing money to "invest" in private loans be any different (from a tax perspective) than borrowing to "invest" in any other {legal} vehicle (stocks, bonds, real estate)?

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

Valuable information, knowledgeable guest speakers, and you may find partners to work with or a mentor to assist you. 

So I tried following that same pattern by trying not to have much contact with tenants or potential tenants and just having my assistant be the go between for everything.

I have borrowers come to me every day who overlook doing this No Brainer, simple paper credit.Example:   Property Listed at $100,000Negotiate at sales price of $90,000?

Love to assist whenever possible.