If your plan is to roll the capital gains over into a new investment property, you likely qualify to do a 1031 exchange (assuming you bought the property as an investment, not for resell).  

Although I have to think most of the paper you guys buy is not commercial purpose paper and that  its Owner occ paper.And maybe as the buyer of the paper, licenses are not required  but the reselling of them might be  its always been confusing for me and I am NMLS licensed here in Oregon so I know what's up in this state :)

They then listed it with an auctioneer to resell it out of their REO inventory. 

If the buyer is unable to buy after 4 years, buy back his "equity" if there is any for a discount or let him sell the house, then collect the profit or resell the condo on the same plan at the newly inflated price.I hope this helps!

Meaning to commit to a DW like this you would need to be prepared to resell it where it is and not get a cash buyer or you would have to be prepared to get it to a piece of land like @Curt Smith and create a land/home deal out of it.

Housing Wirehttp://www.housingwire.com/articles/34694-realtytr...Interesting changes in the profitability of flipping (buying - fixing - reselling)

If you can buy it at a price that makes sense to either remodel and re-sell...or perhaps hold as a rental..then do it!

As a Commercial Property Manager I had a vacant unit with a large walk in and when the Owner decided to white box the space I found a national company that takes old commercial units and resells them.

The word is spreading about retirement planning with SFR, and we met a few innovative wholesalers who found a way to pivot and satisfy that demand in a new way: they are becoming retailers.According to dictionary.com , "A wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers

The restriction you're talking about is for re-selling the property, not assigning the contract.