Your plan seems pretty good, but it involves risk with out of area rehabbing, and major dependence on your partner to make it work.

I am working with a big law firm to have a few borrows submit loan applications to major banks and see if the underwrites will take the bait and approve the borrows that cannot afford a home.

Anything major I should be concerned with?

In the majority of our loans, when you factor 75% of as-is value for purchase PLUS 75% of the rehab costs, tge amount of money you are effectively able to get is 80-90% of the total of what you will need.  

Every major lender was there as well as their attorneys and other attorneys as well.

If you subordinate, you have taken steps to stabilize the property since now a majority of the old 12% debt is now at 6%.

My name is Lenny and I currently live in Long Island but spend the majority of my time in NYC due to work.For years I have always been interested in becoming a Real Estate Investor, but have either let negative people talk me out of it, or let small things or my lack of knowledge hold me back from moving ahead.I came across this site by randomly typing in 'Real Estate forums' into Google, in hopes that in this day and age there is a forum for everything, and sure enough I was right.After browsing the site for a few minutes, I thought for sure it would prevent me from accessing any extra material due to my past experiences in regards to Real Estate knowledge.

Remind him that the other two will not be denied based on income or credit history but only on criminal history and rental history, as it relates to destruction of property, etc.This should put him/them at ease and at the same time get you what you need.

When would you suggest listing a house that I am doing a major remodel on?

They have created major headaches for me over the years for me.