@Steve Babiak I'd say the misconception may come from the priority of creditors in bankruptcy.I have never heard the priorities or interests in a mortgage or any note presented as Dion described.

In short, WHing is very hard. 1) Finding a deal that really works for all parties (almost impossible), 2) Putting it under contract without EMD or POF (almost impossible and a huge misconception), 3) Getting your cash early or after closing without a hitch (almost impossible). 4) No resentment from one or both parties- almost impossible. 5) Absent a novation, having no liability or losses if the deal with your assignee or seller goes south - almost impossible. 6) Providing value/ convincing the property owner that selling to you at that insanely low price right now (and not listing it/ market be damned) is in their best financial interest- Almost impossible.

First, I'm not a tax professional, so ignore the rest of my post...Second, there of LOTS of misconceptions in your post.Let's start with this:"I've heard that the profit $100k per build will go attached to my normal taxes as earned income ONLY I would also be taxed under self-employment and the "new" Obama tax!  

In other words, in most areas, appreciation isn't a viable way to earn positive yields (in terms of real dollars).In my opinion, the idea of real estate appreciating (again, in most areas and in real dollars) is a common misconception.

I lend all over the country but my main goal is to dispel the myths and misconceptions.  

Misconceptions seem to still be the lead dancer.

The biggest misconception about wholesaling is that it is an easy way into real estate investing.

A common misconception is that an earnest money deposit is always required to make a contract binding. 

@Dwight Sands  There's a common misconception that self employed borrower's must provide two years tax returns when qualifying for a mortgage.  

So if it's 10 units it's $250.Listen, there's this seemingly big misconception that if you own an apartment that you'll be running ragged trying to keep up the place.