It depends on what segment of the market you are looking at.

I've got the feeling that that there is a distinction between hard money lenders and private money lenders.    

It has some distinct positives, and some major negatives.

@David Brown, first you should make sure you understand the difference between money mortgage and contract for deed, as this are two distinct ways owner can finance your purchase. 1.

He distinctly says yes the offer can be 1% or purchse price but some investors do make contract with a dollar.

My focus would be on spending all of your spare time in learning about the different investment options, the real estate segments you might be interested in and understanding the trends in each.

As a result, they have been able to purchase on the ground floor of a rising market sub-segment.

Some might consider this a distinction without a difference, however, violation of MLS or NAR rules is not the same as "illegal." 

Their distinction is that you get an actual deed to the real estate. 

This could be an area where I'm missing an important distinction. 2) The contingency would already be built in to the $25k at 20%.