From what I gather, and correct me if I'm wrong, the HM lender puts up 95-98% LTC, has the borrower puts up the remainder and instead of charging points and monthly interest the HM lender collect 50% of the profits. 

I have been involved in the construction process of many flips over the years and finally decided I was on the wrong side of the fence. 

I appreciate that you are going to have an off-cycle payment made to cover these payments, but the fact that the statements/payments are still wrong is very frustrating. 

If this is in the wrong forum please advise and I'll move or repost in the appropriate place.I'd like to explain my plan and see what everyone's opinion is.I have been researching real estate through bigger pockets for about a year and a half. 

Just like any business, those that do it right stay, those that do it wrong go away.  

Account ClosedI never sell my SFRs unless (1) my original thesis about the property was wrong or (2) the neighborhood has significantly changed such that I can no longer attract quality tenants paying high rents to generate my cash flow target.

I have been looking for a while on Craigslist and on the MLS and this is the first property that could meet the 1% rule if my offer of $218,900 were accepted.Am I wrong to expect to find a non-distressed property that would meet the 1% and 50% rule in this market?

Isn't that all in case something goes wrong?

Please correct me if I am wrong, but that's how it sounds to me. 

Maybe he/she can prove me wrong.