This outlines the terms of the loan: interest rate, term, payments, default terms, etc.

That was a wealth of knowledge you outlined, thanks for the analogy and lessons from your personal experience as well as the invitation.

You're going to have a hard time finding investors with the structure you've outlined above.

My reccomendation is to outline a realistic business plan in converting the 16 POHs over 12-18 months.

In those cases the value is driving some kind of taxable event, so the more complex methodology outlined by @Don Konipol on a non-performing note may be applicable.  

I think it can be done, I just want to be sure I've put some thought into it first and outlined my companies values before engaging.  

I would send an email outlining my plan and I would market the property, if a qualified person came along I'd rent the place and do the inspections, pay the fee etc when the municipality can handle it.

So I'd say your lender is pretty much right in line with the average.And with all that being said, with the deal as you've outlined it...

I hate to ask on my first post but I was wondering of someone could give me a detailed example of how to determine whether a property is a deal or not, essentially an outline of things to do before you put your name on the dotted line?

You might also want to make a business plan outlining the project including goals,etc.Also take into consideration a mentor in your area.