So, if you're leasing an apartment for $1500, you may ask for $1500 security deposit prior to the tenants moving in.If credit is not as much of an issue to you, many tenants are willing to pay you higher security deposits to make up for their low credit score.

My Credit Score is in the mid 500s.

Project cost has been vetted strongly.My net worth is ~$4.5mm with credit score over 700Liabilities of 500k for 7 year refi on Multi Family building on 5 year term.

Lease options are not for people in Texas that have problems getting mortgages.If they have a problem getting a mortgage, use a ROFR or right of first refusal,, and a lease,  not an option and a leaseThen send your friends to a mortgage loan originato with a 1003 mortgage app filled outThis way the mortgage loan originator can tell them the truth about what their problems are, debt, income, final score, time on the job, etc.It is tough to get a mortgage today, and you don't want to be advising friends about how to get a mortgage if you're not in the mortgage origination businessYou can make money by helping your friends pay your mortgage down over one to two to three years, then buying the house from you at a profitThe ROFR is not seller financing or a lease option which makes it possible for you to do many of them in Texas without Dodd Frank or deal with executors contractsI have written about ROFR's here on BP, search in the search barGood luck!

Then told that since the seller's middle credit score is 640, she was required to complete a loan modification (they claimed anything over 620 requires a variance).

Your on time payments on the loan should improve your score.Also there are several services like credit karma or credit sesame that let you see your score so you can see if its improving.

I have been working with one bank for 10 months  ( we have been members of this bank for over 25 years )  the underwriters are so slow I have given up on them I have a credit score of 740 but I guess being self employed is the problem.What I am trying to do is get a down payment to purchase more property , or possible something more creative basically I feel I have some equity buy I just don't have the knowledge yet to  capitalize on the properties equity.If anyone has any advice I would greatly appreciate it

I have been working with one bank for 10 months ( we have been members of this bank for over 25 years ) the underwriters are so slow I have given up on them I have a credit score of 740 but I guess being self employed is the problem.What I am trying to do is get a down payment to purchase more property , or possible something more creative basically I feel I have some equity buy I just don't have the knowledge yet to capitalize on the properties equity.If anyone has any advice I would greatly appreciate it

I can not get conventional financing right now either do to low credit score.

You might also want to ask about references with banks the agent has; many banks offer a credit repair program to help you get your score up, putting you in qualification range of mortgages.