So he proposed an idea I've not heard before which was raising capital from investors and having your investors be treated as 2nd position lenders.

Investment Info:Single-family residence buy & hold investment.

Seller financing is their preferred way to sell, especially if it's their idea. 

Yes there are a few other costs in there, but you get the idea.

The underlying note is a USDA loan at 3% interested.The interesting part is that there is about $60k of equity in the home after paying the entry fee.One of my title companies is refusing to insure the transaction due to the underlying lender being USDA, and telling me that it is a bad idea to do this on a USDA loan.

My boss just decided to deny an applicant who has a Utility Collection (like Water, Electric, and gas), and I'm struggling with my criteria.Any Idea will do.....

I also set up a holding company. 

It sounds like a decent idea to put that $100,000 to work by helping fund down payments for fix & flip projects.

I did a quick search in your general area and found this listing in Lambertville (not right next door for you):https://www.redfin.com/NJ/Lambertville/92-Swan-St-08530/home...Take note that they bought it for $197,000 in January and now have it listed for $499,000 - which might be kind of high, but gives you an idea of what a flip looks like in your area.

Investment Info:Small multi-family (2-4 units) buy & hold investment.