Additionally, a pro-rated portion of tax is due if you sell with debtOr dent is on the priority for the year prior.

I have personally seen that scenario take place and what ultimately happened was that the company just came back to the debtor and said, "You have to come up with $XXX,XXX for us to be able to qualify you for help.  

It’s meant for owners who want to keep ownership of their property but need a way to access liquidity without taking on more debt or selling the asset outright. 

do your freak out knowing you have millions in debt  or ?   

The client can always use their own funds to replace debt. 

Correct, no debt or extremely limited.

Many of the horror stories I have heard and witnessed in real estate came from the notion that funding real estate with personal debt or credit cards is a good idea. 

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

But also with low debt or free and clear property that they can easily access any time in the future with a cash out refinance.

Just a follow up question, were you utilizing debt to invest, I have always been taught since a young age to try and not utilize debt (I come from a family of stock market investors, traditional business owners) where debt is not utilized as frequently which I obviously understand debt can be a very powerful tool and utilized in a great way its just something I want to avoid with my investments to an extent any suggestions for investing without debt or as little as possible.