It sounds like you let him tie it up for the full 90 days, instead of having a 2-3 week inspection period, after which he would lose his likely minimal EM deposit.

Hi Nitin, You can absolutely set up an LLC yourself on the state of tn web site.  

Best free education on the web.

Also get $2-5K EM that is non-refundable after 21 days. 

I have researched the web and I believe FHA loan IS usable on a tri/quadplex (please correct me if I'm wrong).Is the first lender just wrong with his knowledge of not being able to use FHA loans on tris/quads, or is it just commonplace that lenders have their own rules that typically exclude tris/quads?

The slap 'em in builders don't go much deeper than that around here.  

Basically individual brokers who cover a city or sub-state region.Get on their mailing list and check their web sites periodically will get you access to 'most' of their listings but will not get you to their 'pocket' listings as that requires building relationship.Good hunting ;)Oren

He has been using it for years and it integrates nicely with other web assets.

I am already spending money on cards, yellow letters, web sites, etc.

Then, once you accumulate enough where they'd cover you if paid off, I say "flip the switch" and pay 'em all off as soon as you can ... good luck!