They would not be offering you a hard money loan (loan based on the hard asset) and instead they are lending to you as a traditional lender with private money.

I am now strict about the credit score, and not negotiating any of the other terms like decreasing the pet fee or security deposit to accommodate them.  

I went to 35-40+ different markets a year each year from 2014-2016 to scope out places to lend privately.

I position my inspections as 'planning for future repairs/improvements' which mitigates that whole 'he's here to get my security deposit' mindset.And, I would rather have the tenant with me than to have him later claim that something was broken during the inspection.  

I am a twenty year plus licenses GC who has built over 100,000,000. in commercial and residential construction in the NY, NJ, PA, CT and CA marketplaces. I have flipped new homes and townhomes but phased out raising a...

So a majority of the ownership groups would want to sell, plus since they are more sophisticated owners usually would sell through a broker to get max price and not sell privately.  

I was able to get a private loan which I used to purchase the house then I used my own money to rehab the house.

And I provide solid returns for my private lenders in the process.

2.Are there strategies to reduce the required down payment or secure better mortgage terms?

Prom notes are a security unless exempt ..