HOWEVER, when it came time to fund the loan - he started asking for MORE FEES!

Like loaning money on a House in Wampum and ending up owning it and now having to deal with low income tenant in that area . 

In our case we tripled our deal flow when we started a program of direct email to mortgage brokers, real estate brokers, and real estate investors who could bring us either mortgage notes for sale or new loan opportunities for loans not qualifying for commercial financing.  

If you don't plan on paying cash and have to leverage with an owner-occupied loan product then you should set up your LLC as a property management company because you will not be able to borrow in the name of the LLC.  

I think this was to ensure your buyer can qualify for a loan.

We invest in non performing loans and do some private lending as well.

You may not collect anything, but it will sit on his credit report and prevent him from getting a car loan, home loan, or scamming another landlord.

Commercial loans are also tracked. 

I did a DSCR cashout loan from my other rental to buy and reno.

I'd anticipate financing wise at least 6 months but would always recommend a 18 month financing term on your loan if your getting one.