So I am at the mercy of that person for basically EVERYTHING.I am still waiting on that payoff amount 9 days later and am up against a clock where they have scheduled the home for sale at auction come March.

If that's what you're really after I would start with the basics of what kind of bank loans either residential or commercial are available to you - not saying this is the best option, but it's a good place to start.

A fake and basically empty Facebook account (with a hotmail email attached to it) was planted to give itself some credability.

While I understand the basic structure of General Partners (GP) and Limited Partners (LP), I was under the impression that GPs always had to put 'skin in the game.'

They just seem to be trying to add too much now and not doing the basics well.  

Plus, other routine tasks like transferring loans and providing payoffs were way more difficult with them than it should have been.

Right now the only utility at the garage is power so basically I am starting with a frame and a roof. 

Try to rehab a house 2,000 miles away with no money as a beginning investor.I basically had to run a pyramid scheme in order to finish this project.

Not sure if its "too basic" but its where my mind goes.- I'd start with the end. 

Basically, you're gambling on the second appraisal and at most you will lose the $1000.