Your money in the deal shows you trust your own ability to complete the project and shows the lender that you have something to lose if the project takes a wrong turn.

As a Realtor, Here is my advised IF you do decide to wholesale and and are reported for "equity stripping" you will lose your license and get fined heavily.

If bank is smart they will know that they will lose more money by going through with foreclosure versus shorting it to him, no?

I would expect you might lose money on this one.  

You lose 6 months time of cash availability (perhaps 4.5 months since it does take time to get the refinance) where you may have been able to buy 2 or 3 more properties in that same 6 month time frame using my method rather than buying with cash.With my method I pay no lending costs with my first purchase since I use loan documents already created by an attorney for another loan for which I participated. 

Here's the problem, that area is the only beachside area in Brevard with an excess of inventory.

You can be nice and cordial, but you will lose big time if you put your heart in to this venture as your tenants will tear you up emotionally and financially.

Everyone has been talking about how that area has been over extended in real estate for years now, one days it will hit and people are going to lose their shorts.If you take equity, you could be putting yourself into the same position as many others did in the bubble.

You might can get back money if you lose it but time is what is most precious. 

Buying land and constructing looks to be attractive play to me . if real estate corrects by 15-20% then all i am losing is the 15% profit margin assuming i have assessed things accurately .