If you were to pursue the deal you should have the property inspected to determine the condition and life expectancy of all major components and appliances.  

Let’s start by examining what the FHA single family home loan handbook, HUD 4000.1, defines as a loan assumption.

That's a crap shoot, but having a sharp negotiator representing you could pay big dividends.When it comes to offers, they will use mostly of the same components, but terms and conditions will vary by deal because no two deals are exactly alike - especially when it comes to terms and contingencies. 

You need to understand the deeper, emotional component beyond their surface-level goals.2.The power of referralsCurrent investors referring you to their network is a great statement about you and puts you well ahead.

Never a bad idea to define roles /responsibility but word of caution don't go overboard.

Jami,A cabinet (kitchen or bath) has essentially 4 main components; the frame, the decks / shelves, the facing and the doors.

Certainly roles should be defined but if this is a partnership the partners should be putting in money into the deal and aligning w/the investors. 

It comes down to debits and credits for the most part but there is also the logistical and sometimes conflicting component of investor requirements and 3rd party requirements (MI company, junior lien holder, senior lien holder, GSE, etc.) that at the least, influence the transaction or, can control the transaction beyond the seller's or lender's objectives outright.

You have to define ( going out of business).Is it they are losing money and will shut down soon or it makes great money and the current owners are just wanting to retire and cannot find anyone to take it over?

Case law however, not the written statute, has more clearly defined "work".I'm also confused how they could claim "providing materials" 2 months after "they were fired"....can you document the firing as real and enforcable?