This is correct, so I would disclose every aspect of the sub to and how it relates to the seller, perhaps going so far as to insisting the seller sign off on an acknowledgment that he understands the ramifications.  

Many times and they still insist.

Usually high cap rates reflect the market's insistence that investors be compensated more for the risk they are taking.Another error is new investors going to high cap rate markets because they compare those markets to other markets - but they neglect to look at historical cap rates in the markets they are investing in.If one market is trading at 6% and another is trading at 9% right now, when Market A returns to the historical level of 8%, Market B is not going to stay at 9%.  

Some wholesalers insist that money should be paid directly to them.

When I was ready, I emailed and they insisted on a phone meeting, where for an hour they tried to convince me that I needed a coach and that I should spend a bunch more money with them.

I actually called and spoke with someone and they explained that they told her that because she was insisting that she paid by card before (that is not the case, though it may be incorrect recollection on her part rather than actually just lying to them to get to pay the way she prefers).Hemlane hasn't handled any maintenance or turnovers for us yet, so I can't speak to how they would do on that. 

I wanted 15k down and 30yr @ 10%, but he insisted on 5k down and 15yr @ 0%. 5k is nearly half my cost basis which includes the adjacent property so I pushed the term to 20yr.

If the seller is insisting on a high price with not-so-hot financing terms, though, this may be a riskier project than it's worth.

In structuring same with seller financing, realize that (imo) a MAJORITY of sellers will reject not having a personal guarantee, so the individual insisting on this will lose out on that deal.  

Heck, you process debit cards if you insist for 1/10th the cost and non-reversible.