Some more time on BP and reading the wholesale forums might be more enlightening than assuming it's all good.Next, I assume you're not aware that double closings as we use to do them, using our buyer's escrowed funds for our purchase is no longer allowed, it's a violation of ALTA and state law escrow funds accountability.

Just be cautious.Items a lender may ask for include the following: Your business plan with highlights about the market and need for your project, Proforma showing your land cost and construction costs with your projected income, ALTA/ACSM Title Survey, Title Committment, Phase One Environmental Site Assessment, Geotechnical Report and Construction Plans.

Your numbers don't thrill me, but might be ok for youTying up property is fine however, recording a Memorandum is not an effective strategy sufficient to cloud title in CA, at least as far as ALTA & CLTA insurance policies go.

The only ones buying low cap rate properties are the cash, safety investors (insurance companies and some REITs) - let them have them, they'll get buried just like sub-prime and Alt-A!

All the teaser rates are over, the interest rates have reset and the writing is on the wall.But in the coming quarters, the scenario will play out with other exotic mortgages, Option ARM (pick-a-pay), Alt-A, etc.

The brakes were put on these transactions through ALTA (American Land Title Association) requirements.

Maybe Alt-A but not conventional.

You can study (or, heck, just find the basic settlement procedures) at the American Land Title Association (ALTA) web site. :) 

An Alt-A loan may go up to 90%.

Anything less than the above and you get into Alt-A, subprime, stated income or hard money loans...