My guess is that he is trying to protect the interests of the other owners, who he may have made a promise to.I would definitely make sure this is sorted before closing

Some banks promise weeks and take months.

. $200K for the package), each SFH in the package is being sold at the equivalent of $22,200 per house (or far less than the cost to build) and promises to yield $570 in rent per house. 

A "note" in itself can be any form of a promise to pay, and that can be affixed to a tax note, a tax lien, a home mortgage or even a personal check.

No offense, I get what you're saying i promise, why ask a question when you can just look it up due to the question already being answered a 100 times.

A specific example i found really helpful in one of my managerial classes... i had a project where we had to create a fake business proposal with realistic numbers/projections/research to present to the bank.

No different than how mutual fund companies have been over promising returns for decades. 

Just finished Audible "Rich Dad Poor Dad", "Fake" and moving on to "Guide to Investing " then " Cash Flow Quandrant"Highly recommend "Fake", where he pieced together quite a few alarming red flags I noticed/observed.

Even if as-is value is much greater than the purchase price.I would be cautious of any HML promising to finance 100% of purchase, because as the saying goes - there ain't no such thing as a free lunch. 

Never promise the seller it will work.