If bank is smart they will know that they will lose more money by going through with foreclosure versus shorting it to him, no?

I would expect you might lose money on this one.  

You lose 6 months time of cash availability (perhaps 4.5 months since it does take time to get the refinance) where you may have been able to buy 2 or 3 more properties in that same 6 month time frame using my method rather than buying with cash.With my method I pay no lending costs with my first purchase since I use loan documents already created by an attorney for another loan for which I participated. 

You can be nice and cordial, but you will lose big time if you put your heart in to this venture as your tenants will tear you up emotionally and financially.

Everyone has been talking about how that area has been over extended in real estate for years now, one days it will hit and people are going to lose their shorts.If you take equity, you could be putting yourself into the same position as many others did in the bubble.

You might can get back money if you lose it but time is what is most precious. 

Buying land and constructing looks to be attractive play to me . if real estate corrects by 15-20% then all i am losing is the 15% profit margin assuming i have assessed things accurately . 

Just try not to lose any.  

Then you know the exact dollar amount of any reliability or service-based premium you might be paying, and you can decide if you want to pay it, or would prefer to risk losing the house entirely.A company like the one I work at, the lender credit for a given rate might very well be $500 less than what you will get quoted at the jenky place where the underwriter doesn't know how to calculate rental income.

IDK just a thought, otherwise as a landlord you have to be careful of how much you spend to fix up your places, the value may not be there in the end and you will lose out.