Find a good real estate attorney and a title company.

The securitization of the mortgage backed bonds, false security of bogus ratings and inadequately funded "insurance products" like credit default swaps, let the originators of these toxic instruments take on a thousand dollars of profit for a dollars worth of capital.

Excellent at deed research, problem solving, affordable, they find title problems others miss and get them resolved.

To add insult to injury, I also received notice that the property in un-insurable.

Rates from 7 to 12%We roll the closing costs into the dealThe only out of pocket expense is for valuation and processing (generally $295)Step Two:  The refinance and holdNo seasoning on title. 

Downside is split single contract into two, double closing costs and increased mortgage insurance costs.MY QUESTION:Does this sound correct, or is the underwriter mistaken...Do multiple townhomes require their own individual loans for each single unit (even if apart of the same structure)?

Lets do it together real quick:80K ARV20K Rehab50K PurchaseMoney borrowed=70K Time borrowed= 6 moHard money Costs=7K (10% of 70K: 2points on front 2 points on back, and 1% a month)Real Estate Commissions=8K (10% of 80K: 3% to listing agent, 3% to buyers agent, and 4% to title work, doc stamps etc)...so the flipper would take 6 months to lose 5K and you still havent gotten paid either...But wait, there's more: Upon further inspection the wholesaler's numbers were wrong anyway, the flip is going to take 32K and the ARV is really only 64K and I can only buy it for 12K (lets say 9K to the seller and 3K to you)12K + 32K = 44K Hard money costs 4.4K and closing costs 2.5K, RE commission is 4KTotal costs = $54,900Sale Price = $64,000Total Net to flipper= $9,100 Joseph, I am not necessarily a mentor, yet. haha but I would be willing to answer any of your questions. 

I am waiting for insurance money to repair the fire damaged property.Can anyone suggest a way that a JV could be implemented in order for me to get:1) $350k upfront for my venture,2) get value for the insurance for the repairs3) after repairs sell the property pay off the mortgage and split the profit and give the investor about $200k for the $350k investment (plus repair cost)Just to want to know if there is a legal mechanism to do this.

I think your insurance might be a little low.  

. $300 cash flow post 5% vacancy, 10% capex included, PMI deduction, water, tax, and insurance.