I guess investors should all pay higher rates on less favorable terms and consequently be at a competitive disadvantage for their bid price so that the lender can maintain a call provision and simultaneously expose the borrower to risk to their assets.

There are advantages and disadvantages to each approach.

The disadvantage of it is that the rate is usually adjustable...so if you have a large HELOC deployed and interest rates go up, it can really impact your numbers...especially if youre using it over a long period of time.  

Investing in LA absolutely has its advantages and disadvantages.

You'll also find lots of threads discussing advantages and disadvantages of getting a license, what real estate agents might do to be seen as investor friendly, etc.If you have specific questions feel free to ask.

Disadvantage is that I don't know if there is enough rental demand?

@Joel OwensThere are definite DIS-advantages to owning less than controlling interest in a condo project like this.

In a wholesale situation, they wouldn't be acting as a sellers agent of course, but I know it has been claimed that licensed agents have taken advantage of their knowledge and expertise and that the seller was at a disadvantage.

Potentially taking an awesome advantage of the insanely low down payment and letting it seem like a disadvantage when you count your cashflow.

I'm just saying that wholesaling and rehabbing seem to be more profitable than tying up a large down paymentFlips and wholesaling are very time intensive activities and they are taxed disadvantaged compared to rental properties.