If someone tries to isolate you and pull you offsite that is an immediate red flag.

But then goes on to state that at this time time their home does not fit into our buying strategy, ie not enough meat on the bones.  

Then my lawyer transfers the property to me at closing, and creates the new mortgage and note.

Not saying it's not possible,  just might not be any meat on the bone for the deal from my POV 

That would put you in the red and it would be too slim for me to hold.

They have done five portfolio loans for me at 5%, amortized over 20 years with a 5-year balloon.

Requires a business license.I hope all the REI-types reading that article will take note of what raised the red flags and caused the county to start looking into this.  

(See red question mark below) We’re back towards 2003/2004 High / Low Spread, but took a brief dip towards 2006-2007 levels.

Well the seller gave incorrect information on the numbers of the house so when I read the contract it was a red flag.

Building from scratch there has to be a lot of meat on the bone to justify the risk.I know people now that are buying for holds only that use to develop because they are tired of the personal guarantees with millions to tens of millions on the line.