It is however a great way to go bankrupt if any little thing goes wrong and you don't have a proper cash buffer ...

Their idea is so simple, if you're bankrupt is the house still worthed 75% of the investment ?

So technically, I was bankrupt!

You need to understand you are starting a business, which is OK, but most do go bankrupt in the first 5 years.

The project that he was attempting to revitalize bankrupted the two previous companies who took it on. 

I thought about that option but didn't see any value in a penalty from someone who's fringing on bankrupt.  

My tenants are recently discharged bankrupts who with some family help have put together money as a down payment on a property.

Basically, we have a possibly bankrupt borrower, a bankrupt lender, an agent who (reasonably) won't send us the PR without an offer, a bondsman's lien (4th), and several other substantial physical issues including possible misrepresentation of the lot.

Creative Finance is a key to people that are rookies.Pretend you are bankrupt with a 550 score.Get away from needing down payments money, get toward finding a way to -- Cash or Terms (give low cash offer)- Use Lease Options, Sub2, Installment Land Contracts, Wraps - AITDs, Private First Mortgages (free and clear) to get the solution without banks.- Use IRA Private Lenders and Joint Venture Partners.

Here's an article I found:http://www.nolo.com/legal-encyclopedia/bankrupt-tenants-how-new-bankruptcy-29689.html"It's not uncommon for tenants with significant financial burdens to declare bankruptcy.