Just be careful that you don't deny based on any protected classes.

Purchase the note, set up w a servicer, make sure your asset is insured/protected and then let the note 'season' w the servicer for 90+ days to document a history that monthly statements and CFPB compliant late notices were sent and any correspondence is documented.   

Additionally, the final report counts as a public source, non-specific to a particular buyer, and not in violation of any protected groups under the Act

It is where you control the deposit you put up; communicates your “out clauses” to protect yourself in the evident you can’t find an end buyer.

Hi Kevin,Personally, if you are just starting up and don't have sizable assets to protect, an umbrella policy would suffice.

Your intitial post mentions: ""Owes= $24,000 (Charged Off but are accepting payments to principle)"If you can get that debt assigned to you then you are in the driver's seat and you have the right to remove the property from tax foreclosure in order to protect your valid lien, whether either brother likes it or not. 

How do I protect myself if 1 of the 10 properties isn't being rented for a period of time and the loan flops and the property goes through foreclosure ?

It is customary for the Seller to pay a commission to both their agent (listing agent) as well as your Buyer's agent, even though your agent has a fiduciary responsibility to protect your interest.Don't be pressured into any price and terms you can not honor, or live with.

Each investor is basically told that there is very high chance to lose their entire investment and they should not even think about investing in the deal unless they can afford the loss.Second, a PPM contains indemnification clause that protects the sponsor from being sued by investors unless the sponsors is found guilty of criminal misconduct. 

LOLAnd possibly an asset protection attorney?