It also allows you to present stronger offers to a seller since you won't need a financing contingency.

Is the Investor still tied to the mortgage?

I don't have to pay high-interest rate any points, I know 100% I will close and the seller feels much stronger about my offer when they see my bank statements.  

It can take a couple of years to deploy that much capital with a single sponsor, so your fee might only be tied to a few deals before it times out.Let's say that the first closing is a $20MM check, and then four months later there is another $20MM. 

@Elizabeth MillerThere is no rule that says when a foreclosure is truly final or when a bank or corporation has to list their properties.It could be tied up in lawsuits.

I was making a lot of money from online endeavors a couple of years before that, but have just barely been scraping by over the past few years, so do not have the capital or income to be able to purchase another income property these days, although that is very slowly changing and I'm able to start slowly saving again.It kind of sucks because I have a lot of equity and capital tied up in that property, but can't leverage it to roll onto a larger property, since I wouldn't be given a mortgage at my recent income rates.I think that, unless you're a slumlord, you can't really cashflow here - at least it's not worth the investment, and that the real gains come from appreciation and equity gain.I also think that student housing could be a great opportunity - if I had the funds, I'd be really interested in purchasing a house with a lot of bedrooms in the university district and then renting it out to VIU students.

I don’t need to have personal first hand experience with an eviction there to see this when all I have to do is come on this site and see the hordes of  frustrated  landlords  in nj with their hands tied thanks to insane liberals 

If you are a serious buyer, and you are thorough in your physical analysis of the property, you can avoid the inspection, saving yourself $$$ and making your offer MUCH stronger in the process.

I’m nervous that they require all these fees up front and I’m finding bad review after bad review about how they tie up a bunch of money and they change price, change their reserve, etc when there is any interest.

The balance is about $250,000 and I currently have a loan with Wells Fargo that is tied up to the prime rate.