All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.So, if your "teacher", "mentor" or whatever else they claim to be is proposing using contracts to broker real estate without being licensed or owning the property, they are teaching ILLEGAL practices at YOUR expense.

Even if all the proceeds are held in escrow, she sounds like someone who might not move out and you'll end up having to deal with an eviction, which can take a long time. 

In FL, net listings are legal (listings where "commission" earned is the difference between set seller proceeds and sale price, rather than a % of sale), however they are not permitted on the MLS.

If the lender has already reconsidered the flaws you pointed out and decided not to proceed, then your best choice would be to try another lender.

The long-term goal is to take my wholesaling proceeds and build a multifamily portfolio.  

Most of the deals we see are from our investor network, past clients or cooperating brokers.Your best bet is to meet with a commercial lender, analyze your current holdings with a commercial agent and decide on the best way to proceed.  

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

I would talk to an attorney to see what my rights were and how to proceed.

Using your available cash to reduce your expenses (debt payments) affects your bottom line the same amount.Sell your current rental - use the proceeds to pay off as much debt as possible.

However, as we move forward we would like to have a better understanding of how to proceed if there were any factors overvalued on these 2 deals.