As the marines say, "Improvise, overcome and adapt".

Have any of you encountered similar issues and how do you overcome them?

My reason for that is, the fixed costs of launching such a vehicle can be crippling for a small investment pool to overcome.

Overcoming them and properly preparing for what you can is vital.

If any of the partners that personally guarantees the note files for personal bankruptcy that could technically be a "materially adverse change" in a guarantor's financial status and trip a covenant violation.

I would strongly recommend against any adverse credit options, like foreclosure or short sales. 

While this may save them Marketing costs to acquire new borrowers, I worry about the concept of "adverse-selection."  

My experience has been that every transaction is different and you must do your best in overcome any objection that may come with every transaction.

There are many hurdles to overcome.  

This make sellers very skeptical of you and it is an unneeded objection (we already have enough objections to overcome)Personally, I would go to Vumber.com.