Has anyone out there encountered similar situations?  

These people are the most driven individuals you will ever encounter.  

All are confident they can provide me a product, but I have a bit of sticker shock at the rates (5-7%) and terms (no more than 20 years amortization, most with a balloon payment at 5 years).  

That will give your unit a better appeal, you increase the rent and they don't get sticker shock of the rent increase. 

For these reasons it is extremely important for you to be informed and act quickly when you encounter difficulty making your mortgage payment."

@Greg Gibbons The point here Greg is be prepared to encounter this activity sooner or later. 

Spend a little money with the attorney to draft everything that needs to be signed, use little stickers to show each one where to sign and drive to each of them and state your case and explain that you will do all the legwork and chase them around.

Have you encountered a situation when you wanted to remove someone from the group?

   I have had encounters with that type,I bought a few things from one who did the pallets and truck loads once,then searched around and found where I could do it  myself and cut him and any  other middle men out.

This is where the sticker shock really comes in as a new agent.