Some individuals are afraid of diversifying all their money in the stock market and might be interested in holding real estate backed notes. 

We reach agreement in principle with the seller on what we mutually want to achieve. 

I'm planning to invest in real estate crowdfunding instead of stocks in the near future.

The saddest example is the people who pay $40k for a ,mentorship they can not afford, have no capital to invest, are poorly trained with no understanding of real estate principles, law or finance, and are unleashed on unsuspecting home owners to try to fool them into allowing the wholesaler a fre option to buy/sell their house.  

I've never seen anyone that can accurately tell you if a house, stock, precious metal is going to go up or down.

A housing stock shortage is not the same as owners not selling due to rate lock.

It's the same principle you would practice with a mutual fund: it continues to grow (hopefully) and you pay a tithe from the prophets received at the time the profits are received.I am not strict about this by any means, for myself or others.. what other people give is not my business and I do not believe in people giving under compulsion.

We put 12% down on the property at a 5.99% rate and contribute another $120 or so every month towards the principle. 

What I mean is, the payments made to the seller, is the total payments consisting of principle/interest, property taxes and mortgage insurance all wrapped into 1 payment and made to the seller?

This seems to be less of an issue especially since when an LLC borrows for real estate at minimum the principles/owners personally guarantee the debt anyways.