Even if nothing goes sideways with the flip itself, the longer you have to hold it the great the chance you have of a market shift that impacts your exit.You make your money when you buy.  

Should that loan impact my offer?

Therefore, until the ownership is severed, the owner my actually take certain actions that may be detrimental to the collateral. 

This is a general answer as there are always possibilities if there is enough planning time or additional facts that could have an impact on the answer.

  $10K might not even cover the impact fees that you'd save.This sounds like a pretty good deal.  

For examaple on our 89,000 square office center in Denver, I have a lot of snow removal costs that I can't collect for because the tenants are all on gross leases instead of NNN, while I can't collect them in the form of recoverables they are still operating expenses and are still negatively impacting my NOI. 

It's not a good idea if you want to make an impact and do great things in real estate.

Jeff, I want to add one more thing, you should defiantly seek legal counsel in case you have technical questions and you ave other entities that may somehow impact this future LLC, but an LLC is a pass through and offers one layer of protection, depending on how much protection you are seeking you may want to review your position with counsel.

If they're not prepared to do that, ask what they would want to deed the property to you.Not sure what the impact would be on the short-sale if you're already in negotiation with the lender.

I read their book when I was getting into rentals about 20 years ago and it had a big impact on me.