Apparently, your business proposal does not go into sufficient detail about what start-up costs are, where the money for start-up is coming from, what operating costs are going to be, and where the money is coming from.You are not presenting a financial team of management that is going to make the business succeed (because with your lousy credit and lack of money, I am not going to trust you to do it).That's just a start of why I wouldn't give you any money.

They are saying that our approval from 3.5 years ago is no longer sufficient.

Doing it in the contract is normally sufficient but I've seen some agents who do it in any initial interactions.Also if you came across the property in your "normal" day to day work as an agent, then you have to disclose to the seller the fair market value of the property.

I would assume a sufficient amount of equity plus enough of a spread for my end buyer to make at least $20k on,even w/ my assignment fee, correct?

I was just going to do an addendum - but it sounds like that might not be sufficient.

If takes 90 days then sell FHA.FHA underwriters and appraisers are still going to want to see that there was sufficient work done to add value to support a higher price than was originally paid.

Cost segregation works at virtually any level when there are sufficient assets in play to work with.

There are issues of self dealing that can apply if that new collateral is not as sufficient as the prior collateral and frankly, I doubt many brokers or investors address the issues as they are usually leaning toward conducting business in their own best interest.

I agree with Jason, the extra time between fully executed adendums and a 3 day inspection clause should be sufficient to evaluate any large (potential) problem you are worried about.Don't make any habits of backing out, but in such extreme cases where a large issue was identified after offer made, you certainly have a right and reason to either re-negotiate or back out.

If they refuse without a sufficient explanation to you, I would be suspect.