And always get second and third opinions (and bids).

Third, mentioned above, the rate on hard money would eat up a lot the profits - remember the proforma that you apparently didn't do.  

Sounds like all three of these addresses are in the third addition to Saint Joseph Gardens subdivision.

There is a four-part Howey test for securities that you're welcome to Google and find all the nitty-gritty details about, but here are the salient elements:It is an investment of moneyThere is an expectation of profits from the investmentThe investment of money is in a common enterpriseAny profit comes from the efforts of a promoter or third partyThe details of this can get quite technical if you're dealing with operating companies or exotic SPV-live constructs. 

How big will the third and fourth bedrooms end up?

Third-party company or in-house?

If this wasn't absurd, a third wholesaler pitches the same property for 470K.

Many banks start with less than they are owed so as to entice third party bidders.

For a third story pop up you are looking at another $100k.

A third solution would be to partner with someone and have them put the property in their name, but that can get more complicated and you'd want a lawyer to write up an agreement.