I'm trying to determine what the appropriate steps are for fixing the problem.  

- Your marketing plan seems appropriate.

I do agree that for all parties a fixed price estimate is best (you need to know how to estimate properly).To be successful as a GC, things like getting a large deposit, making sure you are always staying ahead on billing and are spending clients money and not your own, marking up all costs at least 20% to cover OH&P, billing appropriately for change orders, not to mention staying up to date on latest building methods and continuing education, are the minimum requirements to last in this business.Of course you have to keep construction costs as low as possible when you are rehabbing a real estate project.  

They know all the current trends and can help you create a color scheme that's appropriate for your homes architecture and also help you with what local buyers are looking for.

My start in real estate investing came when I began working for a real estate investor providing rehabilitation work while going to school.

If they give me a gift of say 50K and file the appropriate forms to show that it is not a 'loan' in any way, are those funds acceptable for a down payment on a conventional investment property loan?

@Thomas Faragoi, did you end up finding an appropriate lender for the property in the superfund, if so who?

It is not appropriate for me to comment on why any specific member is no longer a memberhttps://www.biggerpockets.com/rulesMODERATOR NOTE:  No off topic discussion.

Give them the appropriate written notice by local law, (30 - 60 days or whatever) that their current lease is expiring and if the don't sign they will have to move out. 

But since you asked specifically about performing notes, this doesn't seem to apply.I think you'll need to clarify what you are looking for to get appropriate answers.