@Caleb Heimsoth, your post is a good example of the problem with Memphis.

Not having an NMLS or real estate broker license doesn't automatically mean that what they are doing is illegal since there are provisions for one-off mortgage lending by unlicensed individuals (lending your nephew money to finish the garage being a good example), but there's about a 95% certainty that if you're doing it for a living and/or actively putting yourself out there as a mortgage lender of any form (like if they are doing enough volume that they use email templates...), you are supposed to be licensed.Another flag is anyone asking for up-front fees before you're even in escrow, or fees once in escrow that exceed a normal appraisal cost.If BOTH of these tests fail -- no license AND up-front fees -- they're almost certainly a scammer.

We are also removing plaster and updating with drywall, and are adding new flooring in the bathroom and downstairs, and of course, fresh paint throughout.

For example, you still can't use the property for personal use. 

Take this one for example in my hometown.

Is it possible to close a deal with just a purchase and sales agreement for example the seller signs one the buyer Signs another I split the difference?

There are at least two carbon copy examples in the neighborhood and this seems to be a low complexity project.  

However they added a second qualifier to it which ended up including many desirable areas....for example...lots of areas in the greater Seattle areas qualify.

I think the math is sound though I don't think that 90% leverage is really a great example. 

For example, if you need to borrow $1MM, do you need to show $1MM net worth in order to qualify?