At this point just making connections and adding value to relationship building through the the expertise I have, 15 years in MA and VT. 

They didn't proofread it well (spelling error), and the wording at times seems less professional for what one would expect from a financial institution.

I have a client whose house is currently worth $500,000 who owes $150,000 on the mortgage who is interested in getting a $250,000 second mortage to use as capital to invest in real estate in Massachusetts area.

In more Rural markets it is not unusual to be between $20,000-$40,000 per space, with a CAP closer to 10%.My point of this is to show the disparity of on and off-market communities and when you get to a certain size then you start seeing Institutional money.

Whenever I have an issue with financing, I normally contact local institutions.

Don't be scared to ask your dad for a co-sign or advice.1% rule rarely works in most of CA/NY/NJ/IL/CT/MA/TX/etc.

Regarding Atlanta and Charlotte institutional buyers are buying up the market?

University Area: It's a hotspot for students and faculty due to its proximity to educational institutions, ensuring a steady rental market.

As Wayne Brooks said above, anything publicly listed (REOs, HUD, Homepath, etc.) has already been seen by the agents who represent the institutional buyers.If you happen to get one of these under contract for a price below what another investor will pay (unlikely these days), you can definitely still do a double close, assuming there is no resale restriction from the seller.That said, if you have these large institutional investors in your market, you're probably going to want to focus on off-market deals that these guys aren't finding themselves.

If you are just holding the lot, then there are more favorable terms available than what you are currently experiencing.I always recommend shopping at least 3 different lenders (even more), as every single institution has different terms and requirements, and they all offer different financing products.