There are site sensitivity restrictions, fire and building code (if you are separating between floors for up down you need to fire rate the floor like you would fire rate the party walls that separate units, which can get expensive), etc..As Travis mentioned, once it becomes up down, it's no longer a duplex or townhome, it's a condo.  

Honestly, I don't know how sensitive the family will be on the issue.  

This was time sensitive, so I couldn’t wait for a bank loan.

Probably not, but they have stuff stolen all the time and are very sensitive about this issue.

I am not saying that.. there are many ways to structure deals that don't need to have securities or PPM's issued.. but if your putting passive investors that you don't know into a common enterprise that you control then that I think is the definition of the HOwrey or HOwie test.. and I did get stung on that one personally by the state of Oregon department of corporate finance so I am sensitive to it.. my only blemish in 44 years.. there are other ways.. to structure these..  

Let's face it, people get overly sensitive about the subject.

Ah, but with that LLC will come a magical corporate veil that the local district management judge won't be able to pierce, perhaps with his penetrating judicial lance...It's all a load of hocus-pocus baloney telling us that without that LLC, we're at the judge's mercy and his big bad black judicial lance will come penetrating in tender, sensitive places that make us squeal and call out for our mommies.

They are getting sensitivity training. 

They have the lease on file, and you should be able to see it with any sensitive information blacked out, they just don't like to give it to you.

Contracts are meant to be followed, and if there is no penalty to leaving the contract terms and going to someone else, what's the point of making a time sensitive contract in the first place?