Legitimate lenders may charge a small application fee (around $250) to verify you’re serious, but if someone’s asking for thousands with no real intention of closing, that’s a huge red flag.On a more positive note, there are creative financing approaches out there.

Doing an unsecured loan is a horrible idea. 

., I left Anderson for a small firm that will do the actual taxes and then another company that specializes in tax strategy. 

Here’s the bottom line; unless the deal is VERY large, or the sponsor is going to syndicate a large number of deals, the investor will make more money purchasing the property theirselves with a option low to moderate interest rate loan.  

I have a potential deal on the hook however, the property has been neglected by its previous and current owners and the current tenant isn't the cleanest. Current owner is willing to break even on the purchase price h...

More syndicators go out of business and wind up in foreclosure and/or lawsuits to enforce loan guarantees. 

@Enrique Toledo  If the seller is firm at 10% down, you can always get a personal loan for that 10%. 

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

The best option would likely be a construction loan, which can cover both the purchase of the land and the build.

Security deposit will take care of the last month of unpaid rent, but I'm considering filing a small claims court lawsuit to get a judgement for recoverable damages.