I certainly wouldn't expect that to be a normal level of response. 

I normally buy direct to seller.

Lumber market has me on hold at the moment, but when that returns to a somewhat "normal" level I plan on getting back to this project.

I agree with your view that whomever you spoke with is a little out of control with their fees, but this is normal in our industry.

Pay for your buy through normal loans, big bank loans, small loan options, or a mix of loan types.

My understanding is that normally the 2nd lien would have to make the senior lien whole to preserve it's rights, which I don't see happening in properties without even enough equity to satisfy the first lien/mortgage debt.Based on your response it sounds like I'm taking title without any of those liens, but want to double check.

@Paige Seeley - thanks ...the min down payment for a 1 unit rental  property is 15% ...so putting  20% down isnt that much more ....recasting  isnt always  offered for rental properties so you would need to check with lender ....recasting normally has an admin fee of $300-$500 

There's been maybe 2 built in 5 years here. they are called Tri village self storage. the climate controlled portions are normally vertical and at least 4-5 stories and normal walk up doors are single story. there is some smaller units but real climate controlled development is vertical not horizontal. 

Normally I wouldn't be targeting this one, just hard to pass up the discount + 10k year in "gifts" on the seller financed portion. 

They have too many rules that they put OVER the normal underwriting with most loan types.