Finance is not real estate, screwing up in finance carries fines up to $100,000 and/or up to 10 years in federal prison, so you can see, it gets serious.I agree with Albert that your best approach is as a money partner in an LLC which keeps you out of the lending arena, at least as a lender taking a security interest in real estate.

They told me they could do assignments and double closings before i opened escrow so this shouldn't be a problem for them but they have not done anything to carry this deal forward.

Another option would be to seller finance: sell them the property and carry the paper (if owned outright) or wrap around sub to existing financing (but beware of due-on-sale risk).

That leaves $1500 for vacant property insurance (usually $400-700), carrying costs on capital, utilities, and any other misc costs.Additionally, our experience in the Ft Bragg area is that buyers generally require ~$4500 in seller's assistance on closing costs.I've completed a handful of rehabs for sale and rent in Fayetteville and am always looking to learn from others.  

OK, first off I'm wondering if you're confusing in the heat of the moment the effect this "lien" would carry as a hit to your credit score, report, etc because I'm honestly not sure on this, but I DON'T think this will be like having a court judgement hit your credit report, which IS a bad thing to have on there.

In my world its best for your assistant or someone else to carry the license. 

(boo)So that means I'll be carrying it into next year.

AllWe have a contract on our first home to start flipping, (exciting) from asking around we have received different answers to our question, "what insurance should we carry for flipping homes".We have received the following, Builders Risk, Liability, Home owners and few others, should we carry one, all or a combination.

The shorter loan term is in many cases a interest rate risk tool as these institutions do not have the long term funding in place to carry a 20-plus year fixed asset on their books.

If they are using lender or hard money funds, it means even if you agreed to carry back the $15K difference, you likely wouldn't be in first position.If it were me, I'd tell the buyer no deal without the $100K.