You will defintely have to come in with cash in those instances to compete, so having that line available will be to your advantage in making your bid viable. 

I believe they just mean it is the best form of ownership allowed, "greatest ownership interest in real property" as even if you own it as a fee simple estate, there are always potential greater interests, like when government takes land for public use, but unless it is one of those weird special circumstances, it is "unqualified, of indefinite duration, freely transferable, and inheritable," meaning you are not limited like some others, a life estate, for instance, or I've heard of land leases where you own the house but not the land.  

I am still barely learning all the jargon for instance.

What you don't want to do is jump into something and buy it and find out you can't do what you thought you could. for instance, the lot is 40' wide, you need to know what the setbacks are that are required for building a house on the lot, what is it zoned, etc.? 

Like any investment its your comfort that matters first and foremost. for instance, in buy and hold will you be ok when your tenant stops paying rent and you need 2 or 3 months to evict and find a new one or when you need to fix something you did not know about and it kills cash flow for a few months?

I am actually finding many that have multiple mutlifamily homes and duplexes together for instance there was a deal here in Phoenix for 7 units 3 SFR and 2 duplexes as a packaged deal on the same lot.

For instance, the house has an ARV of $200k, I can get 65% from  hard money but I have a private lender with 20k or maybe even two private lenders with 20k each.

I will look forward to seeing the final product once you finish the houses.I'll just leave this here if people are interested in reading two articles about a famous hoarder house in Bondi.

So in these instances am I wrong for low balling offers?

If, for instance, you can manage a 5%/year increase and keep costs relatively stable, that should translate into a substantial increase in property value.