You answered my next question perfectly because after doing a little research I found out the wholesale equation and I realized that the numbers have to add up for the deal to make sense on both ends but as far as staying good with buyers Communication is key..

Did they tell you a note originated illegally can't be enforced, to know that, you need to know how notes are legally originated, doubt that was ever mention, as they probably don't know.Did you learn how a security interest is perfected?

Depending on your and your partners particular circumstances, different arrangements are 'best' (as a side note, I have yet to see the 'perfect' answer, there are always tradeoffs). 

But probably most of all, I think instead of trying to craft the elusive single perfect strategy, it's important (in my opinion) to simply get started one way or the other and take that first step.You're at an exciting stage, and I wish you the best!

I had 3 dogs at the time, and it made perfect sense. 

Worked perfect.

I'm always looking for the best way to do something and never end up doing it because I'm looking for a level of perfection that doesn't exist.Shiny object syndrome.  

Yes it made perfect sense thank you for the advice.

Seemed like a perfect fit.  

The subject of notes also bounces around, you can say the real basic aspect in a couple paragraphs, then explain different types of notes, how interest is applied, how principal is reduced, how those can be changed and the effects of additional payments, how to figure per diem interest, how liens are properly perfected, collateral and lender or note holder's rights, borrower's rights, ...... and after 21,000 words, still not mentioning buying notes as to due diligence as that ties into all that has been written, nor have I reached buying in whole or slicing notes up, or paths as to exit options and the determinations that might be considered.