Investors purchase equity in our case, but the answer could be common for your setup.

That was my first post on here and it was extremely helpful.I actually just made contact with a guy who researches the houses that are coming to auction and buys them for investors at the auctions and charges a fee.

I agree with Jason, the extra time between fully executed adendums and a 3 day inspection clause should be sufficient to evaluate any large (potential) problem you are worried about.Don't make any habits of backing out, but in such extreme cases where a large issue was identified after offer made, you certainly have a right and reason to either re-negotiate or back out.

At 4.62% that is extremely cheap money for an investment property.

Shareholder loans are a commonly audited situation; this can also cause the taxpayer a lot of unnecessary paperwork and can be more trouble than it is worth.

My buyer is extremely happy to have an opportunity to make some money, I am happy with my assignment fee.

Lots of links on the wholesaling sticky post... but working with cash buyers and getting a non-refundable deposit seem to be common themes.

2) Is it common, especially on smaller deals and smaller groups, to pay back all investor principal at reversion vs paying back as the 1st level of the waterfall?

Based on the numbers you provided, an all-in cost (acquisition of $50k plus rehab of $22k) is $72k which is 58% of the ARV (the low end you stated) which makes for an extremely good deal if the numbers are what you stated.I would also add that $22k for the work you mentioned seems low to me unless you are working with very low end items.

A pic is extremely important and it should be a picture of you, but that's not as important as simply having something that identifies you.2.