But I understand where I’m at now, and am willing to work for free until I can provide such value.A little about me.

Is my understanding correct? 

I'm sorry, I don't understand this post.

If I understand correctly; the seller would receive 80% ($40,000) directly from the mortgagee at closing and would enter into a personal agreement with me for the 20% down payment ($10,000) in which he would be reimbursed separately from my mortgage payments at a separately agreed upon rate and term?

However, in my experience the good wholesalers understand comps and construction costs, are transparent, have good referrals, and can actually get you in the property. 

I understand that a fideicomiso is needed if we are wanting to own a property by a beach (which we would).

You need to understand that we are only obligated to whats in contract.

Besides understanding the benefits of a free market, they also understand the ramifications of rent control.good luck

I am coming from the ground-up multifamily development world and I am struggling to understand how smaller properties are seen by investors.Where do you invest in Pittsburgh?  

You can review your HOA's governing documents, also known as the CC&Rs, to understand the proper procedures.