I highly suggest you use our marketplaces to find trusted, investor-friendly team members: Tax Pro finder: https://www.biggerpockets.com/business/finder/tax-and-financ...Lender finder: https://www.biggerpockets.com/business/finder/lendersProperty manager finder (if you go that route and don't self manage): https://www.biggerpockets.com/business/finder/property-manag...

The 5% of the remaining balance late payment fee is a little much IMO. 

Start with one close to home where you can learn and build a team.

I cant speak for what this seller will or wont do, but my suspicion is that an offer accompanied by a balance sheet or list of collateral and not liquid funds wont fly - it wouldnt with me. 

Build a strong team, prioritize cash flow, and take the time to understand the local market and regulations, especially for development projects.

But, there are other strategies that can counter balance at least one of the disadvantages.  

Purchase price: $58,500 Cash invested: $55,000 Sale price: $155,000 Contributors: Peter Vekselman Partner Driven and Carol Tarnowski teamed up for a transformative project on 14th St, Fond du Lac, WI.

If you are interested in these options, reach out to me and my team can go deep with a couple of our lenders that offer these programs. 

There are Markets in the western states like Vegas or Reno that offer a balance of cashflow and equity returns. 

Ensure that the mortgage is assumable, and confirm that there are no due-on-sale clauses that could trigger the full loan balance.