@Jonathan Mednick  I do enjoy this thread.And I can see your point on too much under one roof.. there was a company in Utah operating out of Indy and KC  that did this and they got them selves into a pickle and one of the issues was they were able to stave off bad situations by buying there way out to keep up appearance's until it melts down... and a lot of it stemmed from HUGE guarantee's that were just not sustainable in the asset class they were playing in .. they could do it at first with the HUGE mark ups they made.. but its a robbing peter to pay paul effect.. and leads to were the principals and sales manager are at now which is litigation of a very serious nature.Warranties:I understand how the public likes them and how a TK company can use them for marketing purposes however many TK companies feel that these can induce folks into buying a certain product over another..

A few comments, thoughts to ponder:Not taking away from your right to deal on your own behalf, personally investing, but what is you public duty as a licensee?

As of late, I am still scouring the appraisers and public records for information on the properties in this tiny developed area.Has anyone come across a situation like this where the legal transfer of ownership has not occurred?

A public sale will take place where the Mortgagee can advise a reserve bid.  

The oft-cited $10k/month goal requires a $3M net worth using publicly-traded securities in a modest balance.  

@David MarzulloThere are some good points and some bad ones, customary for public forums.A private lender is the role you will have with this borrower, he was known to you, personally.

Grounds for denial of issuance of license or for disciplinary action(A) In addition to Section 40-1-110, the commission may deny issuance of a license to an applicant or may take disciplinary action against a licensee who:(1) makes a substantial misrepresentation involving a real estate transaction;(2) makes false promises of a character likely to influence, persuade, or induce;(3) pursues a continued and flagrant course of misrepresentation or makes false and misleading promises through associated licensees or through any medium of advertising or otherwise;(4) in the practice of real estate demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner as to endanger the interest of the public;(5) represents or attempts to represent a real estate broker other than his broker-in-charge or property manager-in-charge without the express knowledge and written consent of the employing broker-in-charge or property manager-in-charge;(6) guarantees or authorizes and permits any associated licensee to guarantee future profits from the resale of real estate;(7) makes a dual set of contracts, written or otherwise, by stating a sales price higher than the actual sales price in an effort to obtain a larger loan from a lender or lending institution or for the purpose of misinforming a governmental agency or any other reason;(8) is convicted of violating the federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or has been convicted of a violent crime as defined in Section 16-1-60, has been convicted during the previous five years of a felony directly related to the practice of the profession, or has been convicted during the previous seven years of a felony, an essential element of which is dishonesty, reasonably related to the practice of the profession, or pleading guilty or nolo contendere to any such offense in a court of competent jurisdiction of this State, any other state, or any federal court;(9) fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (8);(10) fails, within a reasonable time, to account for or to remit any monies coming into his possession which belong to others;(11) pays a commission or compensation to an unlicensed individual for activities requiring a license under this chapter.

If major work has been done, you may be able to look at your County's public records and see if permits were pulled5) Pay structure--how much up front, draws, etc?

You also may check public records for any recordings regarding HOA liens. 

Is it close to local public transportation.