With collateral that weak 80% of upb is a pipe dream.

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

This isnt for the weak...

As Scott mentioned, the weak links here are the buyers themselves.

We all have our areas of expertise and areas we need advice on and finding your weak areas should be your focus.I would keep a notepad and write down or type and save them and keep adding to them, research the answer myself or ask these at the next REI meeting.For someone doing buy and holds you must understand the 50% rule.

Direct Mail Advertising Weaknesses: 1.

Don't these put the buyer in a weak position, too?

I am wondering why you allowed yourself to be in a relatively weak position by executing an option contract instead of a purcase contract?

So weak borrowers (no experience, no cash) are going to have a very tough time finding any money.

So, any "unecessary" contingencies like "finance qualification" and "inspection period" will simply make your offer weak.