There's risk and cost involved if they have to foreclose. 

It’s unbelievable some times the extent people will go to, and the risks they’ll take, to rip off other people.

And without the risk associated with borrowing for fixed assets on your own.There's no real downside to this equation as long as the DSTs are solid and your focus for growth is on the cash side. 

Yes as a flip is a risk like everyone have said.

@Julie Hill What option(s) you decide to take will be dependent on: Balance sheet  - how many $ are you willing to invest, how quickly and for how long;Time commitment;Risk/return expectations - newbie investor only look @ returns, whereas they should be focusing on understanding riskLiquidity and risk tolerance - closely linked with the earlier point on risk/return expectations.I would focus on picking a niche and taking a deep-dive.

This is a situation which has negative implications which I would not risk.

Also, I understand I would be at risk of the "Due on sale" clause, but it is rarely called, correct?

And if it’s “timber to breakeven for 15 years because I think this is were the path-of-progress will take growth” is yet another educated risk/reward decision.I just cringe when I hear a rookie say “buy land” because (to me) it’s indicative of a.)

If they refuse you then decide if you wish to take the risk of continuing or dropping out of the sale.

You will find that $300K for a 4-plex in this area is at the top of the scale.If the owner is moving out of state and doesn't have any equity, one strategy is to come in with a master lease or a lease/option which lowers the risk to you.