It stands to reason that if you can reduce your soft costs, you could probably go over the 70% rule a little bit.

Knowing these things will help you adjust to the price and see if you can potentially reduce the expense. 

If they are not wiling to reduce the price, why would they feel inclined to extent their obligation to you?  

Spoiler alert, I got shingles during the process due to stress...What town was yours in?

Now you're going to be suspicious and  stressed regardless of whether not something illegal is really going on. 

Seller lost.Any payment or thing of value received by a seller over any period of time that reduces the purchase price on a sale is a financing agreement.

He stated, he would be willing to mentor/collaborate our ideas on the project and let me use his local resources to rehab the property at a reduced cost if I were to purchase the house at the AS/IS price of $97,500.  

With a partner, you may also not have to make monthly interest payments - depending on your cash situation, that can be a big stress reliever.  

as long as the net to the seller is acceptable, and the buyer agrees to reduce the credit if the house does not appraise, I don't see the problem with them

I'm looking to assign property to a cash inv for $75,000 quick close and I'll reduce to 73,000