I've seen investors offer ridiculous returns for money which reeks of desperation and over-leveraging.  

It's all dependent on your comfortability with risk and what $# makes you feel comfortable with that risk.   ...or your desperation to rent the property...

If borrowing from your 401k is a desperation move, or grasping at the idea of something that is not realistic, then you are better off leaving those funds in the 401k.  

I think it's important to remember when dealing with short sales that the people are in a desperate place. be aware, and empathetic, but don't let them take advantage of you.

She's trying to desperately sell the property.

I've seen people lose 100% of their equity instead of only losing a few thousand bucks by selling for less than what they paid.People will often make poor decisions in desperate times - sometimes those poor decisions will benefit you, other times they will benefit nobody.

I have something that I desperately need advice on.

Hi Kesng,As wholesalers, we market to a small segment of home sellers who because of their particular situation are motivated, (some times desperate) to sell a property at a substantial discount.

How can sellers be that desperate.

If you can't qualify for one, you're SOL.Doesn't sound like a deal to me, and usually a seller won't negotiate that far in they are offering financing, unless that are really desperate.