It makes a  lot of sense that these boutique hotel companies would look to smaller cities that are being revitalized as they can acquire property for a fraction of the cost.

We can own/operate 600 lockers for $7m, and generate very healthy returns at a fraction of the cost. 

If the deal simply fails to perform, then you may have to sell the property at a loss, which means you might only get a fraction of your initial investment back.

Think about all these multimillionaires created over the last few years from buying into bitcoin when they were selling for fractions of a penny each.

At this point, I'm most interested in house hacking, but I have not yet seen any duplexes or four-plexes selling for a fraction of their value in areas with healthy rents.  

Is your experience similar to @Grant Kemp where only a very small fraction of the DOS clauses are being called?

You don't want to go there unless you quit your day job.I think too that getting involved with partnerships, syndications and financing brokers with fractionalized interests isn't a way for a new note investor to go, your due diligence is entirely different aimed at that broker or structure in addition to the note and most, I'm sure, would not pass my muster.

One sure-fire way to make a loan into a security is to have multiple lenders contribute to the loan, called fractionalizing the note. 

Most of the time they are repairable for a fraction of the cost (and hassle).

In our case the ‘gifted balance’ was only a fraction of our down payment.