The only thing I can think of, is the builder/seller wants me to back out so they can resell to someone else for a much higher price.

The LLC purchased a house to rehab, then re-sell it.The rehab costs far exceeded expectations, and the property will be sold at a loss.This is the only property ever held by the LLC, and given the wonderful results, the members will be dissolving that LLC with no further activity.Given that the LLC's only property was purchased for flipping, is the LLC a "dealer", or does that even matter ?

I am trying to find my first fixer upper to resell.

There is a the way of taking it from non to repaying again and seasoning it for 6 months and resell it.You could always do a Deed in Lieu of Foreclosure and get the house back and then run either an REO play or Seller Financed route.  

(The math and thinking is slightly different if you want to live in the home (primary residence) or if its an investment to re-sell) 

So I have a hard time wanting to call something I can't resell and that can possibly be redeemed "inventory." 

If I do truly have a list of 5000 leads for homeowners who want to sell can I resell that list if I haven't used it at all. 

Buying resell is the way to go for that, and usually locks in the lower property tax rates as well (higher on new builds, weird system).

Ideally you would want to turn around and make $10,000 in 10 days, and resell to a cash buyer.

@Michael Lettieri Hey Michael - wholesalers mostly find off-market properties, put them under contract, and then resell them to investors at a higher price than what they put the property under contract for.