You will need to follow up regularly to insure they are staying on track.Back in the old days of rent to own the upside for sellers was in renters failing to buy allowing the seller to rinse and repeat several times keeping the DP and principal each time.

The exam is a license that allows you to operate in a certain market similar to licenses by securities brokers, attorneys, physicians, plumbers, barbers and the like.

Looking into a multi family property, to buy. we have secured private funding for a cash deal then refinance with a first time home buyer loan.

These are regular 2.00 LED A19 bulbs.Is there any recourse here? 

Buy them on sale, used etc. and check them regularly to insure the tenants have not turned them off if they are paying for hydro.  

I have paid a security deposit.

There are several members in CIREIA who do these deals on a regular basis.

Anyone who simply wants to be a lender gets a mortgage against the property as security for their loan. 

However, in the scenario you described, it appears there will be a first mortgage in front of you, reducing your security/increasing your risk.As an investor, if you are putting in 50% of the cash required to close, you should expect 50% of the profit on sale. 

I wouldn't assume that this experienced investor could also just get a regular commercial loan at typical rates 10% down and 5% interest rate. assuming again they have proven to this lender in the past that they are extremely low risk?