Is this a giant red flag and should I run the other way? 

@Dick Rosen 1% rule!

Not trying to be a dick, but why would you buy these lots without knowing the answers to these questions? 

I would avoid doing a heloc , selling your residence and taking on giant bank loans .

All those policy premiums become like a giant 0% loan to the insurance company.

I was able to negotiate a Kubota 0 turn (8k value) and a giant gun safe to be part of the purchase (2-3k)Cons:1.

The image I have in my mind is that of a giant ocean going vessel that displaces millions of tons of water as it moves at a slow pace towards its destination.

Not just that but theres a giant mining pit that you cant see but near by that may be turned into a lake in the next 10 years.

I've seen cases where an FHA underwriter goes "wait a minute, the borrower either lied about occupancy intent when they took out the HML, or they are lying to us now, either way this is a giant red flag for fraud." 

Perhaps the gurus at BP headquarters are running a giant experiment on anchoring and reference-point psychology by seeing if they make a wholesaler officially interested in "on market deals" and "traditional financing" if he becomes an agent!