I am brand new to wholesaling and came across a property that defaulted on a reverse mortgage.

as chris mentioned its an event of default when the owner fails to pay and the bank steps in. 

I can't think of a scenario where anyone would feel comfortable putting down non refundable EMD of 25-50% without an option contract in place.To put it into perspective:The average sales price of a home in the US is roughly $375,000That means a potential homeowner would need to inspect the property (without any equitable interest), deposit $93,000 - $187,500 EMD (non refundable), and pray that there are no missed items on the inspection and/or no unforeseen life circumstances that would force them to default.

From my experience, using the BP proforma option is highly inaccurate (If you use their default data), unless you plug in accurate data.

I personally don't like having pets in my rentals but the debate always defaults back to the numbers game.  

The personal guarantee is basically a safety for the seller to hold you personally liable if you default on the loan? 

I don't have much in way of savings and am recovering from some bad credit decisions (credit card defaults 2 years ago in the total amount of about $60k).

IF its in an LLC, a lender has no recourse against anything other assets if you default, so you're at higher risk for them, which reflects in the rate.

In this episode, Ana touts the use of depreciation and cost segregation (presumably for unleashing bonus depreciation) as a way to offset active W2 income, but she makes it sound like it's available to every investor by default.

He is also defaulting on his HELOC (he doesn't have a mortgage, house was bought in cash).