We only accept good funds (money order/cashier's check) for the initial payment, and then we do electronic once the relationship has been established.

I share this not to discourage you from embarking on this project with you as a manager, but I flip homes and have seen for myself the incredible savings in time and money that can be activated when you have the right person overseeing the project and who has the relationships with the subs that can make sure to push them and hold them accountable.

SBA , Smaller Banks it would have be Commercial Loan sure they require something down will be required unless you have some relationships already 

Still, to me (with limited knowledge), this seems like a great deal and I should at least cultivate this relationship going forward (while self managing). what do y’all think?

How do I decline replacing it and keep a good relationship? 

I provide huge value to them by delivering a product for their clients, and they provide huge value to me since I get more eyes into the property that I'm selling and am favored from an already built-in relationship and trust between the agent and buyer.

I think these kind of terms are very relationship-based, but try and see what they are open to!

This particular bank will not support absentee (eg, lives in California or New York) borrowers, and requires a relationship.

Build a core group of relationships that you can learn from.Mike

In the past with one house, I paid a contractor who I had a good relationship with $100 for his time to come with me during a showing to give me some rough estimates.