If that’s not appealing or not possible switch up your tactics for finding properties and come back to probate sales at a later time.

That got me thinking of a tactic I used to use as a newer rehabber of stocking my rehabbed homes with used appliances purchased on Facebook marketplace.

(That's where the 'consultantancy' and/ or additional marketing and advertising angles, other tactics, buyer pre- screening, etc. can come in very handy... and routinely 2- 3x your LO, ROI. :-)

This is totally unethical and bait and switch tactic. 

Is this a frequently used tactic?

If the deal isn’t going to protect your buyer why would you as a agent suggest such tactic where you’re leaving your client open to buying what may be a pig in a poke.  

Honestly it's mainly just the truth not a negotiating tactic.

A contractor doesn't need to sell up scare tactics about how hard it is to run their business. 

I've used this tactic many times and it works well.

So that's all smoke and mirrors used car scare tactics they are telling you.. they may put a mortgage on the house but its a transfer of the LLC they are not foreclosing. you have just agreed to transfer your interest to and they take over ownership of their own mortgage..