The value of the improvements is a fraction of the total basis.

That's not real wealth to either of those people, but that's our Fed/Fractional Reserve banking system at work destroying real wealth.

Basement does, but its value is only a small fraction of ground floor footage value.

Some may have funds, some may broker your money out, some may broker your money in a fractionalized loan.

One investor per note, and typically the hard money lender/broker will service the note for the private investor.Next you will find lenders who do fractionalized note investments, ie multiple investors on one note.

Best part is we only have to pay a fraction of utilities, since they're split between roommates.

Buying your own residence doesn't really help you out right now if you can afford to live for a fraction of the cost if you are renting from a family member (as long as that is a long-term deal and not going to be terminated any time soon).

The week of only a fraction of these homes are still on the list. 

Then the new contribution would earn a fraction of the company based on the total new value.

Concurrently a very small fraction of these people have actually had to employ their policy in hopes of defending their assets or know anyone who has.