Yes I understand that possibility, that's why I try to build relationships with the builders that I work with so they know that I'm trying to get them a good deal and I know that I can trust them with any potential contracts.

In my most recent 2 deals, both had contingencies and we still won the offer.

Haven't found a deal that works for BRRRR. 

Wholesalers (no offense to those in the comments) who are doing this without being a foreign entity are probably co-wholesaling which is on the borderline and practically acting as an agent without a license or getting referral fees by having actual wholesalers on the ground doing deals and they just provide the leads which is different than wholesaling.

I cant speak for every deal they have ever done, but I will say that any deals That I was involved in with safeguard and there was any issue whatsoever they jumped in and worked diligently to solve the issue as if it was there own money. 

While his loan isn't assumable, you could structure a deal where you take over payments while giving him equity in a seller-financed second note.

Wondering what the process looks like for getting a conventional loan for an out-of-state deal.

What are your next deal options?

How did you find this deal and how did you negotiate it?

You have to come to the table (a future deal) with funds to get the ball rolling.