That is the Cliff Notes version. 

Couple of notes based on comments you made in response to others:1.

I usually take some of the recycled capital and buy a note to pair it with. 

On a positive note we did build a new house to the specifications of a specific tenant. 

The license doesn't cost more, the service and quality does.And a note on that cost, in my experience hiring contractors, only a small percentage of the cost savings was due to finding the right guy who is willing to work for less.

I had written turno notes and messages to clean upstairs room after last job was downstairs room.

An investor who has participated in a subject to transaction without lender approval should NOT assume that they are safe from note being accelerated because a certain amount of time has passed.  

Note the house is not registered as a multi unit property. 

Note that active income isn't the same thing as non-passive income, it's lower bar that just requires that it's a business activity that isn't just entirely passive. 

So this group, they pitch people saying "Hey, invest in this NOTE" which a note is a LOAN.