This one needs just a LITTLE bit more than the other one with some arranging of appliance hookups but again, nothing huge for work needed.

You aren't an SDIRA Fund manager licensed to arrange financing conduits, you aren't a mortgage brokerage, you aren't a registered lender or servicer, so, absolutely not, you can't jus do what they do!

i have a handyman (house) in mind , also a handyman ( (person),that i'd like to set up a deal-- he does all the work, about $40,000 worth, (same as the p.p.) and we share the money after sold. i've worked with him before, but not in this way, i always paid him after a job. i like his work but wonder if there are any problems with this arrangement? 

In some locations, this sort of lease back arrangement has ended up in front of a judge, with the judge ruling the transaction to be a loan in disguise.

Arrange a face to face meeting with the tenant as soon as possible.

As for private lenders, that's a different story since they are individual people who may be happy with the arrangement you propose as long as their investment is secured and they receive the return you promised.I would think that the rates you would pay a private lender would make the investment a loss since you're going to be paying a higher rate.

If the call goes well, then you arrange a time to go walk through the property. 

Thoughts on this arrangement?

Why do they have an issue with this arrangement?

I would suggest that you have the title company arrange for the seller to sign.