It is much easier to talk about being conservative when the sponsor implies that they are CHOOSING to keep millions in reserves or buy a low interest rate cap.  

Then maybe you can go to local meet ups and partner up with a successful wholesaler as you're starting out.  

If rate come down and  you refinance out of current loan, another appraisal will most likely be done again, no need to pay it twice.  

Cash flow with a 7% interest rate is hard to find, unless you are comfortable with fixing something up.

Bruce,No need to guess.You can check them out for free.They have plenty of free “open house” meetings with both people working with them and people  checking then out who aren’t working with them, all in the same meeting and there is live Q&A with the owners.It’s easy to lump all coaches and programs into one group .

Has about a 75% success rate and I have learned (and I hope given some good tips myself) to others that ive met up with due to that and people are always looking for future partners and to learn from one another.

What has been the vacancy rate?

Usually the interest rate and points are a little higher up front than a traditional lender but it's a good alternative to bringing on a partner.

Assume 8% mortgage rate and 30-year term.

.- $500 - $1,000 flat rate breakup fee, payable only in year 1.This very simple, but higher headline, fee structure better aligns incentives.