@Jon Holdman good explanation in plain English, there is no disagreement I see, my statement refers to several risks, market risk, credit risks, repayment, collateral and so on, the interest rate charged is based on the risks assumed, including the risk of loss from any aspect.On the hard money lender side, they mostly set rates to the market, as much as they can charge and remain competitive, while they do some underwriting they seldom go  through any risk analysis, one reason the loan pool is usually too small to bother with it. 

Almost $165 billion of mortgages for skyscrapers, shopping malls and hotels are due this year.While financial-market conditions “have improved considerably in recent months,†the markets for ABS and CMBS “are still impaired and seem likely to remain so for some time,†the Fed and Treasury said.The central bank said it doesn’t intend to make other types of collateral eligible for the program, indicating officials rejected adding residential mortgage-backed securities after considering such a move for several months.

YOU set in a wheelchair for a whole day and see how things for normal people dont work for chair bound people.I would think you would want these ladies as happy as possible for there remaining years,,they wont move,,,do the work.And when they pass on and it is available,,advertise as wheelchair friendly and watch the phone ring.

The remaining tenants say they'll think about it.

I walked through the unit yesterday and there are still some minor things that remain including a computer and storage bins, pile of tenant B’s mail (looks like all the utilities were in her name (every single light was on too WTF?))

The agreement to assume the debt becomes the liability of the LLC regardless of any personal liability remaining by the original debtor.Now, is a debt assumed and being paid by the LLC a personal benefit to your personal finances?

You will need to come up with the remaining 30% somehow.

This is something we've yet to figure out...here's the problem we run into: For our typical rehab where the countertops can go in with the cabinets (when using laminate, for example), the project is completed less than a week after cabinets go in (after cabinets, we only have finishes, flooring and punch list remaining).

The 2 story shed will remain and the chicken coop will be removed, and the upper lot will be completely clear cut (he will be seeing if the local lumber mill will accept the wood for a return).On the inside, the kitchen will need its cabinets and sink replaced, the laminate flooring tore up, and will need all of its appliances.

In researching, I found the low activity is contributed to 4 major factors:i) start of schoolii) increased competition from new builders (priced about 10-15% higher)iii) lack of a swimming pool (to cater to the younger ones)iv) price point ($450k)*There are 3 comparables that have dropped the price by $40k over the last 30-45 days, but are still remain under ACTIVE status.I am prepared to wait till demand picks up a little or the right buyer comes along.