Combine this with the deliberate targeting of unsophisticated investors or those without the resources to run ordinary diligence and you have a winning recipe.

That’s always going to win in the end as to coming out ahead as long as you make smart financial investments (such as maintaining control of your own investments, and making smart choices on properties that cash flow, etc).  

The fact someone wanted to show a 20% versus a 15% return by using a lower interest rate, meant increased risk, which you either win or lose, since you're gambling.2. 

It is better to find a win/win as you cannot force them to stay.

It has worked out to be a win/win.

It can be a conversation in search of a win-win, a mutual effort vs adversarial negotiation as on-market is designed to be. 

You could structure a win-win situation where Investor A (the seller) gets his proceeds to cover the work on the remaining properties, while holding the note for you.

I’m almost hoping she rejects my offer because it’s so complicated, but it kinda seems like it could be a win win.We pay $2600/monthI’d offer her $3k/month ($600k @5% 30year amortization) plus I handle taxes and insurance.

There was a big, very famous lawsuit that ended price fixing in real estate.

So, 400k - 500k sounds like lots of money but if you wanna operate in the 300k+ entry point it get can swallowed up quick.One strategy I'd try is to be a buyer at the auctions, win a bid on a good house, close on it in cash (you should be a great deal under market value) and then get into a delayed purchase bridge loan product which will cash you out a certain percentage of the purchase and supply the rehab funds.