Ray you can still lend in CA you simply need a RE Broker to run the paper work for you so the state Is happy and they will usually want some sort of fee for their time and risk / effort.

They’re simply projecting their own incompetence onto you.

And compare that to simply refinancing.

Whenever I speak to a group of students interested in real estate, I always stress the importance of networking and simply asking people to coffee.

Some of the comments above are simply ignorant to what lenders allow and don't.  501c3 falls in the same area as non-recourse loans for the most part. 

Ended off just simply putting a carpet over it.

Additionally, as long as you put 20% down, it typically keeps you safe in terms of cash flow, and then you simply have a couple dozen houses with tenants paying off your mortgages.

Attempting to collect from someone who has no incentive to pay will drastically lower your chances to actually get the agreed upon money. 

Finally- you can eliminate 95% of the troubles and risk by simply having professional and legal screening and management processes, so don't sleep on that piece. 

The question that I'm mulling over is, "Do I step in to fill that need, since I have the property management experience and contacts prior, or do I simply pursue investing and manage my own properties?"