If the seller declines the offer, it will be for a combination of a) offer amount for the property ($20k) is too low, b) he can't wait 90 days and wants a shorter option period of, say, 30 days max, and/or c) he feels that the consideration you offered for the option contract ("1.5x") is insufficient incentive for him to lock up the property for 90 days.4.

If I partner up and go down on the loan will we be denied because of my insufficient (W2) income and short amount of credit history?

Public knows not to seek nutritional advice from the person working the cash register at Burger King.

After spending over 18 years in the healthcare industry, primarily in Nutrition & Wellness, Quality & Risk Management, Patient Safety and Performance Improvement I've decided to do something a little different.

@John Arendsen, if I understand your posting, you're looking to invest in crowdfunding sites, but not as a typical investor but as someone who sits on the board.There are about 20 sites that I would consider to be investment quality, and the remaining 80+ are fairly poor for one reason or another (in sufficient volume, none of experience, poor investor protection, etc.). 

Whether or not the lender can go after the entity that defaults on the mortgage for any unpaid balance of the mortgage (insufficient funds from the sale) does vary by the state.

Food for thought Justin,Thanks so much for taking time to pass along the intellectual nutrition.

(hint, it's all about future values, both rent wise and appreciation wise.)That's why the market is so competitive in LA for 2-4's...The future value of a property or rent will not rescue you from a foreclosure if the present rental income is insufficient to cover the present mortgage and expenses and you do not have sufficient extra funds to cater to the deficiency. 

If the equitable interest gained by a buyer is insufficient for the amount of the sale price of an asset, if it is not usual or customary, if it is only a small token amount, the seller can avoid their obligations as the contract may be seen as frivolous, not in good faith. 

@Joe Fairless I went in knowing only of rental income and flipping houses as revenue streams and feeling pessimistic, knowing I'd only be bottle-necked by insufficient funds to acquire properties.