We don't promise a house and deliver dirt, but we sell dirt and deliver dirt and a house.

They're still in the talking stages, but they've established a development group and have started to gather funding, so it's in the works which is promising.

You will sign a document at the closing table, in front of a notary public who (at least in California) will even be taking down your fingerprints so there can be no  possible doubt about who signed, promising to move in and occupy the property as your primary residence within sixty days (not seven months, not sixty three days, sixty days).I'm guessing the mortgage broker will refuse to put in writing, such as in an email, that "you can get an FHA loan for a property that you will not be moving into for seven months, without it being fraud."

One of the sites is still saying that they haven't lost any principal for investors, even though  some of the investments haven't paid promised interested in months.   

They have to have skin in the game.... and promises of sweat equity (that they will do the rehab or renovation labor/heavy work/ or the property mgmnt) does not count for anything.  

I haven't been through that neighborhood but it looks promising indeed!

The same ones quickly get discouraged when they don't find deals right away - as they were promised.

Anyone who has taken a student loan signed a promissory note and promised to repay that loan.

I can promise if you have good deals they will be pretty easy to sell. 

The only advantage to the buyer is that there can be no deficient judgement as they have not signed a promise to pay.