Each real estate deal is unique and requires the investor to solve different sets of problems. 

...this post took a weird turn.A quick takeaway that I have heard echoed elsewhere (and in your post)* a pandemic led recession is unique and leads to uncertainty in recovery and treatment (economic responses can't fully "cure" the problem as it is public health issue)I must say that my general optimism is higher than it was during the April/May and I remain confident in human ingenuity and ability to adapt and respond (in the general sense...on an individual level people are all over the place).But yeah, thanks for the quick take and thoughts on where we are headed over the next 6-12.

Send a letter that in a nice tone says that there has been no payment and during these troubling times that you are here to work through their unique situation.Hopefully you have photos of inside the property when you visited to document the damage.Get any paperwork you have with the attorney.

Am I forced to assume it was property and repay the entire deposits?

Purchase price: $166,000 Cash invested: $1,000 Sale price: $215,000 This unique older property on a new foundation with a well, septic and propane furnace.

Thank you for your input @Jaysen Medhurst,you also provided excellent input to my other thread from a few weeks ago :)I have thought about repaying my bad debts using a HELOC.

I read several articles on real estate and LLC but none really apply to this unique situation. 

Reject that kind of simplification and search for more of the underlying, unique identities of possible target markets.Less of a macro perspective, more of a micro one.

. - The most effective thing I can think of as a non-attorney and non-CPA (so check this before you rock this) would be to have a Joint Venture agreement between your company and the potential partner's company in which your company contributes money to each project in exchange for repayment of principal amount (the loan for rehab) and 50% of the net proceeds of the sale.  

If you have the funds and revenue to repay yourself and you were holding these funds for future operations, then you should have no problem repaying yourself from these funds and using the EIDL loan proceeds for present and future operating expenses.