The cash that would flow in a 30 yr loan underwriting scenario is sent back to the bank so that builds equity faster.Forced appreciation, while excellent overall, I am not sure it helps in this situation to avoid income from cash flow as that will probably both provide equity, but also increase cash flow right away. 

However by your own admission this is a large bank.

I know some mentioned about developing banking relationships and I totally agree with that, so here is what you do. 1) Open a business checking account in the name of your LLC to hold the assets. 2) Deposit your cash into that account to fund the real estate purchases3) After owning for 60-90 days, talk with a local lender about a line of credit against the 2 properties at 60% LTV. 4) After about 30-45 days, have the line open to use if you need that liquidity that you used, but until then you are not paying 7% interest on nothing. 

Will he co-sign on loans from banks or private lenders, or will he just say, call 15 banks?

@Brandon Weis just an overly conservative bank. 3.5% down with FHA on up to 4 units.

So, a BUYER that needs owner financing...what if they just used "non-traditional financing"?

This area of banking could do with some standards. 

Also, more people seem to be choosing trade schools over traditional colleges.

Any bank fees.  

Remember you are using debt to make this investment, not reserves  sitting in your bank account so I recommend a more conservative investment approach.