Multiple business entities each have their own purchasing power once their credit is established and there are ways to do that.The second is protection against liability.

I would prepare a personal financial statement for yourself (assets and liabilities) and include the following in the folder:  1) W-2s for the last 2 years, 2) Tax returns for the last 2 years, 3) Your current house value, purchase price, mortgage statement, etc., 4) Your business plan of acquiring 2 properties and using your parents as partners, 5) Your current resume - this shows you are in the corporate world, have a good education, career, etc.  

Certainly a lot less headache and liability investing in notes compared to multi unit buildings!

I'm sure the clear answer here is to set up a new LLC for every project but given how fast you have to move on certain properties or other constraints (largely the cost of setting one up each time) that may not be possible and I'd like to know my own, and my family/friend fund's liability if a Hard-Money loan were to go south. 

Although an experienced note investor may have plenty of knowledge on how to uncover opportunities, at least for me, the challenge isn't finding a $10k investor but rather finding the time to pursue more opportunities.Also, the liability to the experienced note investor is quite treacherous when taking on a non-accredited investor.    

But if you do it, it's on you, if you hire an abatement and get air quality test, that removes your liability, they usually have 5M single occurrence insurance.

So if [T] is willing, and most likely can handle payment & liabilities, isn't it a lot less hassle just to turn a blind eye and let [B] as guest?

This generally releases people from the liability of mistakes in advertising the property.

Interest is also accrued on these penalties daily from the date they should have been deposited.A Failure to Pay Taxes penalty equal to 0.5% of the unpaid tax liability for each month up to 25% of the total tax liability.If the IRS suspects fraud or intentional misconduct, it can impose additional fines and penalties.

Also, you don't want to slander the guy as this can open you up for liability!