Obviously we'd guide them to the method that yields the most favorable results.The problem I see with this area of lending is that most loan officers(LO's) do primary and secondary residences as their main focus and usually do not understand cash or accural methods of accounting, their relevance, or how to calculate cash flow accurately to counter an underwriting decline. 

If the house doesn't need work a sandwich L/O may make more sense.I personally wouldn't do the deal you mentioned unless you've got massive cash reserves.

The LO I set you up with will just need to get their info and submit for approval.

Here is the text from my lo"Your loan has been escalated to a higher underwriter to be reviewed as new.

What contracts will I need once I secure a LO deal?

So..LO's are nice houses nice areas....wholesaling is normally cruddy houses in cruddy areas.

Lo and behold, by the 11th of Jan, I had received approximately 20 calls to my toll free number (half were hang-ups).

It's worth 140k, I already have a potential L/O tenant for the property with $350 a month cashflow.Taking the difference of 140k - 96k x's 20% = $8800 assignment fee.Now if I do that after 6 months I've cashed out accordingly:7k = option consideration2,100 = 6x$350 cashflow8,800 = assignment17,900 = profit................not bad for an easy to execute strategy on a property I never took a mortgage on.I'm actually writing a chronological article named "The beginning of a Sub to deal" that I'll post here on BP once I close the deal, and it will be updated as soon as I wholesale the deal.

So even though you technically can't count it as a down payment reduction, it serves the same purpose.There's also a way when you refi your existing home to put some extra funds in your pocket without doing a cash out refi.Sounds like you need a different LO that can roll up their sleeves and help you to make this work...

I am an LO for a nationwide mortgage broker and we can only do lines on primary & secondary residences.