Owner, Broker, Wholesaler w/ a hard money partner - what?

[Daniel Porter]

hey BP community,

so i found this 3/1.5 property in a pretty liquid market in north texas (denton) for $140k and i saw that there were mulitple options to acquire it. lease option, seller financing, or all cash. pretty eager to work with anyone, which already makes me feel a little uneasy (even though i'm going to need something like this to get started haha).

after a brief first contact with the broker, i found out that it would be 10% down. Very intrigued now, i call the owner and ask more. He's got a portfolio of these and he doesn't have the time to talk, so i can't get much out of him (even after offering to call back later).

from what i gathered it seemed i would be using THEIR hard money for the remaining $126k at 10.9-12.9% (tbd after i am screened) and then i'd have to refinance out. it needs repairs too, and he said that it would just be added on to the cost of purchase, seemingly no room for negotiations. he gave me the entry code to the property without any hesitation as well, which seemed like another flag. idk if thats normal or not though, i'm a newb! 

the whole thing kind of feels like a scheme, but if i did refi into a conventional 30yr mortgage on it, it would work great. He wouldn't really sit down and talk through the numbers with me either, but he said i should call back when he's less busy.

i ran into another company in DFW recently that does this as well (networth realty). A broker, who is wholesaling, and partnering with a hardmoney lender that usually costs 14/4, and then offering to sell those properties for the investors he sold them too. sounds like a legal nightmare, and this offer in denton seems to be the same situation. 

has anyone worked with these types of companies before? i have no problem working with a wholesaler, but when everyone except me is on the same team, i get a bit skeptical. haha. i want to act fast, because i know i could househack this and live for free the majority of my months there, but i also want to be 100% sure i can refinance, or ideally avoid getting a hardmoney loan at 10.9%. 

any thoughts would be much appreciated! 

all the best, 

dan