However - depending on how long investors are in a particular loan will factor into the recapture or recuperation The Good: Strategic Uses That Boost ROI - Think of seller concession BJJ as redirecting the seller’s give into your financial gain. 

BofA was not able to recuperate my money.

The borrower can then legally sell the collateral in order to recuperate their money that was lent.

Statistically, I would bet that many of these properties could be at risk from a similar event before the reconstruction could even be completed.What is the new premium on a $5-10-20M insurance policy and how could it ever be recuperated during the life of the policy or length of the average 30 year loan? 

More importantly, we don't think we have it in us to continue the legal dance months or years longer, knowing how California courts would never let us garnish these people's wages and recuperate the $34,000 in unpaid/forgone rent (for past 13 months), as they don't work at all.

I would recommend seeing the eviction through to completion and using it as leverage to recuperate as much from the tenant as possible. 

They are MUCH more responsive and even managed to recuperate most of the owed rent via landlord/tenant assistance programs.

- What if I pay some money down to keep him happy and recuperate it from bank when loan is processed? 

If the initial funds are real concern, it might be worth considering structuring the distributions in such a way that he or she recuperates the initial investment first.

Obviously, it would come down to how I could recuperate more money.