(Not as part of my consulting business, just as an opportunity for me to learn and perhaps build a relationship?)

S8 is the business of last resort.

Definitely open an LLC if you haven’t done so already and once you have a couple under your belt, you will have lenders lining up for your business.

Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.You're running a business and you've made a business decision. 

I think you just have to work it in as the cost of doing business. 

It's just the cost of doing business.  

Having the seller carry a second is not a problem for the first, as long as their business with you is finished and the loan has closed.

You are starting a business. 

I live in Phoenix and my business partner and I put on a couple local forums for investors like yourself to network.

They don’t have any law firm they work with, that’s all BS they list NPL for title and note holders.I buy and Sell a lot of homes, I have worked with all types of Business as well that do this, PREREO is nothing more then a Wholesaler, nothing special about this place.