@Tabb PittYou should get atleast 25% down and charge atleast 9% interest as you can get 9% all day long private lendingThis will essentially kill the deal for any qualified borrower so you will end up with non qualified borrowers who most likely will default in 3 yearsJust sell it traditional method

If you want to talk risk, put down the PE talk for a second and look at commercial real estate, inflation, higher defaults, forever wars, growing china dependence and the economy and tell me that real estate would not be effected equally across the entire board when the house of cards fall, yet dividen stocks (this is a fact) tend to out perform the rest of the market due to hardships not really keeping people from drinking coke and eating at fast food chains.

When they fail to pay in full, give them your state required default letter and take them to court.

As the commercial real estate sector faces significant challenges as mounting defaults, rising delinquencies, and shifting demand reshape the landscape.

I personally think this should be the default setting and should meet the requirements. 

If things go south and the property is sold off due to a default, you'll be second in line to get paid.

When a due on sale is called, you have 30 days to cure the default.

A nonrecourse loan is a type of loan where the lender's only recourse in the event of default is to take possession of the collateral.

Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

Can be VERY dangerous for buyer as they are likely to be sued by seller in default situation3.