They explained the only way to get out of rent control is to owner occupy in the property for 2 years.

If they have an legally binding agreement, you need to honor that agreement and pay the fee.If you failed to mention to the agent that they are going to get paid, and then explained how, of course they won't present the offer.

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It explains the team that you should develop to have a strong foundation under you while investing remotely.https://www.biggerpockets.com/blog/core-four-real-estate-team

The hard part will be explaining you cannot pay the overage.  

I explained to the lender that I didn't want to borrow funds for the rehab just to buy.

Quote from @Mark Forest: The company I have invested with has done a great job explaining why this is happening and what they are doing about it. 

Agree with most here...the longer it takes to explain a situation or a deal, the less likely I am to want to do it.

It explains the team that you should develop to have a strong foundation under you while investing remotely.https://www.biggerpockets.com/blog/core-four-real-estate-team

Quote from @Marc Winter: Marc, that explains why I'm not getting any traction on my topic!