There are a lot of smart guys like that who agree with him or have even higher hopes.

And wouldn't anything agreed to in schedule B override the original agreement (like it usually does in a purchase contract)?

I just paid my attorney 15k today in just fees for 4 entitlement contract red lines and we arnt even under contract yet!  

You were smart to do that. 

As a general rule of thumb it's smart to pay for 10 - 20% of the total costs (purchase price + rehab) out of your pocket and then finance the rest with hard money. 

in the business world, i doubt a company will "park" they cash in the bank earning nothing while paying their debt with interest. there has to be a smart way to pay down debt.

Its generally retail medical operators, so we include things like the market dynamics for our use and why statistically the market and location of the site will be viable form a business case standpoint, and speak to how the startup has enlisted the help of an EMR or other such consultant to help in their general rampup and ability to bill/get insurance contracts.  

Often times foundation issues can be worse than expected once contracts start working on the repairs.

It can be a simple one page contract b/w you too at an agreed upon rate.

I would also tell you to be extremely careful when doing contracts with builders.