If it is a note and not the fund, is it performing or non-performingIf it is the fund then you need to read the operating agreement and any private placement memorandum etc about the risks etcHave you asked them for referrals ?

My personal risk tolerance would prohibit me from looking at most things west of I-40 except for farther north.

To get in with little money, the FHA is a 3.5% down loan... but it does carry the PMI for the full length of the loan.

A risk we face is that a new investor puts up the capital for a deal or two, learns enough to get going, and goes off to do the business on their own.

When a property pops up that fits within your framework, you know exactly how to value it, put in an offer, and carry out your investment strategy. 

I’m trying to balance the risk and the reward but it seems like everyone has a different scale.

A heloc carries beyond the house

I would contend to you his credit probably hasn't changed, and as you have additional deposit, this should probably carry you through to see if he intends to fulfill his side of the bargain. 

Like any measure of risk, that is highly dependent upon your risk tolerance.

@Shu Zhu I think it would depend greatly on risk.