The buyers  are not required to use the lender but the seller wants to know how strong or weak the buyer is before tying up their property.I have found that the lenders promising better than market rates tend to not close and re-trade.

You do not tie the deposit to any guaranteed refund.

Also that you have already created a tie to yourself thus limiting the protection that a LLC provides

We are managing members of the LLC, and as such have a much stronger responsibility to the note buyers (LLC members); we have the responsibilities of fiduciaries.  

If you are younger adding to your 401K will tie up much of those funds until you are older.

Out money is tied up right now but are thinking about taking a heloc on our current home to purchase a foreclose.

Because of it, our friendship has gotten stronger and our strategy has gotten better as we work to accomplish our goals...Together.  

I think for me the Pro's are stronger as well, because I do intend to buy several properties in the future.For sure your not swaying at all just giving good advice from both sides of the coin!

I have two realtors now tied up in two deals, but I don't believe we can partner in a long run.

I would like to tie up the property before someone else then conduct further due diligence.