I know some of the top lenders here in PDX will do 100% for their prime folks up to 80% arv... so in essence a no money deal.But on Tiny loans and I call anything under 50k a tiny loan.. just makes no sense charging 2 points on 50k... most lenders are borrowing their money from someone so they have a cost of capital and make maybe a 1 to 4 % delta on the interest rate spread... and of course they can charge 2 points then load it up with another 2k of junk fees  LOL..

I like to travel so I use a delta sky miles Amex.

NPN seconds  are a niche that one needs to do as an advanced strategy and have scale.. sandwich lease options like your talking about are frankly fraught with danger and are guru pitchs and coachs who try to sell this stuff so they can sell their coaching.. remember you have all these folks who have small capital and what ever reason they think they should somehow put it into real estate.. when in my mind many would do far better looking to create a business that makes them some real money not just a few hundred a month on the delta while risking cash and taking on massive debt or worse buying sub too and getting a seller all twisted up because you don't have the money to execute.

Not sure how tax sales work in IL  but if the greater fool theory is alive and well and this goes to tax sale and it bids up over the amount of tax's owned and your entitle as the first lien holder to the overage you could profit that way.IL foreclsoures are a long court process so you can expect this to take a year or more and your tax's owed will be higher than now.. along with what ever damage happens to a vacant house.. you as the lender though if the house is abandoned can change locks and winterize it. which you should do.Or to use the greater greater fool theory.. you pay 977 for this note and turn around and sell it without doing anything for more.. and make the delta. either way a cheap education for you.

I set this up to payoff when the underlying note is due.. so in theory if it all works I get the use of the 100k  My seller carry back interest rate was higher than the rate Im paying my bank and so I make some cash flow on delta and there you have it.Now of course what happens if my buyer walks or can't pay.. well I then have to pony up the 100k or get an extension from my bank or find another..

so your making 8% on the delta between the money loaned out and the bank facility.. and you only pay on the bank facility if you tap into it... so 8% on 400k is 32k in your jeans using the same theory and 15K on on your personal equity so that adds up to 47k in a year pretax.. now you pay your tax on that of 15k and you net 32k. 

At the very least you need to make sure that the price you are paying will allow you to exit, if need be.Now, as you've figure out by now, TK simply doesn't have the room to allow you to buy with any type of delta.

On the topic of scale, I have found very little scale delta between a 4 plex or a 6 plex. 

MBS on the secondary market will never tell you where rates are, but you can check the delta between Fannie and Freddie accurately there:Ballpark 0.00 to 0.13 discount points, depending on where a lender is selling on the secondary market...

I believe its a federal law... but some choose to ignore it.I know here in Oregon you as the buyer must wire your own funds into escrow.. you cannot use the C buyers funds to close A and B makes the delta...