For example, in Texas they are very much credit-based, but here in Georgia they wouldn't have any borrowers if they weighed heavily on just credit.

Any borrower can have recourse against anyone originating a mortgage, MLO have specific obligations for due diligence.

Tell the lender to give you a loan committment showing your ability to borrow the funds under the terms offered, if they can't or won't get another lender.

The seller has a ballon note in 5 years and will have a remaining balance of $17K and my amortization on my bank loan will be at $66K giving me allmost exactly $17K in available equity to borrow on and stay at or below 80% equity.

The risks really are with banks getting into internal problems, not closing so much (but they do) but changing loan requirements, having different capital requirements, having concentrations in loans or too much with one borrower.

3.Would I be better off incorporating and putting homes in the business name or will that make it harder to borrow against it?

@Robert Lapp, Dan Walters makes a perfect point and it applies to any list you are borrowing from a wholesaler.

I have seen them as high as $3500, yet the one we deal with to qualify our borrowers charges $300 & that includes the appraisal.

But for someone with a lot of money or the ability to borrow a lot of money they could of made a fortune buying and holding properties.

The standard one from the instit. lenders that I've seen thus far say there are no benefits to the borrower, no lease agreement, no side agreements, AND that the borrower would not remain in possession of the property.