The second flaw is the idea that you can refinance your way to wealth - that has always been very risky even with low interest rates.It is called in-vesting for a reason.

1031 arms length could be risky?

It is harder, more difficult, more risky to wholesale without a license.

I also know he doesn't do his own underwriting and outsources it, which is very risky, and obvious when you look at them try to explain the underwriting during presentations.

They are getting out of the risky states, Cali is one.

So, the common person may ask - well how is me funding the rehab myself any more risky for the lender/why would they want to limit leverage?

I agree that is will be a gamble as to how well it will do.Also, ask the owner if they will entertain partial owner financing to keep from dragging family and friends into this risky business venture.Maybe even rent from owner for a year with right to sublease to see how it goes before committing to a purchase.

It may be that they are underwriting the property at a significantly different valuation than what you are using or that they feel that you or the deal is excessively risky.

The appraiser gave the house a low score so the bank said it is a risky investment for them and gave me a 70% loan.

They recognize the buyer can destroy the seller credit, but they are in such dire straights that the risk is justified 2) the seller knows the buyer and has so much trust in the buyer that they have every confidence that the buyer will perform on the loan.From a buyer, it provides a means to get an interest rate from NLT q1 2022 that is a fraction of today’s rate.