@Joseph TaralloCreative Financing has to do with acquiring properties withSub2Lease Purchase and Lease OptionsLand ContractsWrap Around MortgagesContracts for SalePrivate 1st Mortgages - Private IRA LoansInstallment Sale Purchases on Free and Clear HousesYou can make money for solving problems for home sellers usingJoint Ventures with Home SellersLease Option AssignmentsDon't Be a One Trick PonyBe a Transaction Engineer

The last thing you need if you're doing multiple flips is to have inspectors looking for your jobs, knowing that you're doing them illegally. 

This is an accounting question, how would you do the accounting for a property acquired in a subject to transaction?

ThanksGreg You didn't specify the upside nor speak of a value add play in the deal so it's a little difficult to speculate how to best structure a creative financing package.Assuming it's a value add play with good risk adjusted gains at the end of the process then maybe the safest route is to negotiate a wrap transaction with the seller, and if your are concerned about a due on sale clause make it contingent on the lenders approval.The seller will confront these same financing scenario issues with all other buyers so if they want to sell the property then they can either deal with the issue with a reset and able buyer, you, or kick the can down the line looking for another buyer who maybe willing to assume a less than stellar financing package.As the buyer though your only concern should be the financing package that delivers you title, assuming you plan on making extensive improvements to the property, and allows you to earn what you determine is a reasonable cash flow from the project.Options aren't bankable.

If this transaction occurs the 2nd funding source agrees to give first right of refusal to my equity source to purchase the property back at say $11.5MM- if it takes two months, three months, up to say a max of 8 mos.  

That's good at handling wholesale transactions?

Unless contract assignment is somehow illegal in PA (I'd be very surprised if so), you need to find more investor-friendly title companies and use them.

Thanks, @Frankie WoodsWhen newbies send out letters and they do not know what to say, when to say,  and how to say it to home sellers, they are wasting money and time.Dont be a One Trick Pony, Be a Transaction Engineer. :)

If we sell in bulk, it's a vetted process with brokers on the transaction and according to all local, state and federal rules.

In the scenario you have laid out- you will not be out of pocket any $ at the end of the transaction, and depending on the loan/closing costs, you will probably put a few thousand in your pocket.