Hi Amir,It seems like the decision would depend on the value of the property and its potential use.

I am at the point now where I am feeling comfortable moving forward with a deal if I see potential in the property.

So even if MFB was doing good and had no leverage or affiliation with the creditor, since MFA collapsed MFB investors are stuck holding the bag and are potentially going to get wiped out.

@James Heiberg The mindset I am seeing in Denver right now is looking for a property that may not cashflow AS you live in it, but has the potential to cashflow once you move out and it's fully an investment property.

As part of due diligence , what should I be asking to the developer, what are the potential pitfalls and how do I protect my investment ?

On one hand I agree with the conservative strategy of pausing distributions but I have no real way of assessing the risk of my capital.  

Leaving servicing up to the lender could potentially put your installment payments at risk and in many states servicers need to be licensed anyways so double-check that part as well. 

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

This was being sold on making it easier for wildfire victims and seniors to tfr their assessed value and as usual many people were deceived and didn't understand about this part.

Prop 19 is pretty limiting now with allowing children to retain a parent's assessed value for real property.