I thought the deal was dead, but the offer was actually accepted about a week later.

My first deal was my best friend and he wouldn't even sign the contract to work exclusively with me because I hadn't taken the class on those contracts and what they are for, how they work etc.

Probably the fact that they thinking out the hundreds of deals that have to write at 65% of Arv and the fact most investors are flipping contracts and failing to close on the occasional deal they do get accepted

Find, buy as residence and live in, fix, then after a year rent out... that's acceptable for government money.

Why would they accept that?

Sometime though, there are properties that may get more individual attention if you let the buyers think they have an exclusive shot at a deal.

I have had my first offer accepted and now needing to send the contract.

I they would accept $1 a year until it is paid off I might actually pay DOUBLE what they were asking. 

It's a long shot depending upon factors that include the owner's fiancial profile, but a bank may want to do a SS vs foreclosure.If the bank will accept a SS have him list it with an agent and make an offer.  

WHY are you getting pulls on credit without an accepted property under contract??