Pay cash huge discount and resell on contract at retail.

If you aren't planning to try to resell, you won't risk having to take a capital loss.

Investors do this to protect themselves in the event the note goes into default, they can avoid a judicial foreclose (expensive and time consuming) and just take the property back, and resell it.  

He knew I was re-selling it to my buyers and was ok with it as long as he got his asking.

We are building apartments for short and long term rentals and for condos for resell in Dominican Republic.

Does your contract state you have the right to list it and immediately resell for a profit?

How long do you need to hold them before reselling? 

If you're not currently listening to books educating yourself, I'd start today.A few I'd highly recommend...Buy, Rehab, Rent, Refinance, Repeat - The BRRRR Rental Property Investment Strategy Made SimpleFLIP - How to Find, Fix, and Sell Houses for ProfitThe Book on Flipping Houses How to Buy, Rehab, and Resell Residential PropertiesThis book is not currently available on Audible but a must readThe Book on Estimating Rehab Costs - J Scott

Maybe I could alter my proposal so that they never actually have to put up the cash, but instead just earn a fee for reselling for me.With the put option, I am essentially acting more like a bank for them and freeing up capital that they now have tied up in these loans.

I am thinking if we bought it for my mom it would be with the understanding that we wont make anything on it until we resell it in a few years, looking at rent in the area it wouldnt cash flow if we were to rent anything out with the current rates.