Since im going to live in it i only have to submit 3.5% compared to 20% downpayment which is nice.

If they've submitted earnest money, done the inspection and passed attorney review, and are now out of the allotted time for due diligence (typically 5 days), you can keep their earnest money. 

I set up phone systems on the side using some open source software.

So far we've had two companies submitted.

Daniel, your agent should already know how to submit Homepath offers and I believe they are listed on MLS as well as homepath site.

From acceptance to closing, all done through emails, lots of duplication and requests for documents that were already submitted.

I work full time as a Software Engineer for a health system and I also attend college part time.

My hard money lender told me that I have to submit a contract to them first before they can approve the loan, however the seller wants to know that I have money to do the deal, but right now I don't have the money.

The wholesaler is doing the due diligence on the repairs before submitting an offer?

Unless you submitted a higher offer with comparable terms (all cash, waived inspection period, etc) and you can show the property sold for less than that then it's going to be hard to prove.