This year the institutional investors drove prices down around 6%, but there are plenty of other opportunities if that figure is too low for you. 

If leverage is being used, financing commitments must be obtained - again a lending institution wants evidence that the borrower has the ability and resources to carry through till the loan is paid off.  

The two years waiting is for conventional financing, and any financing through a bank or institution which will require clear title.

As a result you won't be able to get institutional financing on it. 

I am currently lending to flippers who source all their deals institutionally.  

I'm not a mortgage underwriter, but as I understand it the problem with closing out a line of credit just before applying for a home loan is that you have to prove it was you (not the institution that issued the credit) who closed it.In the grand scheme of getting a home loan, given the masses of documentation you have to provide, a letter of explanation and proof that you paid the loan off is kind of trifling.

At the moment large institutions are viewing it mainly as a store of value.

And I don’t know any institutional lender who doesn’t pull your credit when you apply for a loan.However, it’s getting them financed under your personal name is what kills you.

Without a pre-approval letter from a financial institution then can be reluctant to spend time working with you. 

I can also speak to my experience on never having a due on sale letter sent to any of my clients using the land trusts we create, and the “back of house” bank letters I’ve seen state that the major lending institutions do not pursue trusts nor consider them a violation of the due on sale clause.