I have dozens of clients doing this in New Jersey most of which come from no construction background, they simply use preferred vendors we have in place (not GC's) which lowers renovations cost because there is no middle man. 

Yet, it seems common practice for wholesalers to use this contingency to back out of the contract simply because they have not found a buyer within the inspection period.

There were simply too many things about this particular one I do not like so I’m staying away.

If you plan to do multifamily in the "Far" suburbs it can be harder to hit your cashflow targets VS city/near burbs simply because there is limited inventory. 

They’re simply projecting their own incompetence onto you.

A deal that produced a 25% net IRR to investors with a 1% acquisition fee, 1% asset management fee, simply pref + single tier waterfall, etc, may only produce a 15% net IRR under the current fee and carry structure, if their acq fee went to 3%, pref went down, they now have a GP catchup and multi-tier waterfall giving them higher splits for higher returns, etc.

And compare that to simply refinancing.

Some of the comments above are simply ignorant to what lenders allow and don't.  501c3 falls in the same area as non-recourse loans for the most part. 

Additionally, as long as you put 20% down, it typically keeps you safe in terms of cash flow, and then you simply have a couple dozen houses with tenants paying off your mortgages.

Whenever I speak to a group of students interested in real estate, I always stress the importance of networking and simply asking people to coffee.