Same thing with the shower curtain rod and toilet paper dispenser holder. 

When you are the primary account holder in any one of these accounts it strengthens your profile, tremendously.

If one was to do a loan on this you simply cash out the CFD holder and create a new deed of trust or mortgage whichever is customary in the state were the prop is located..

It is crazy to imply that there is just one "right way" to invest (your way) and anybody that does it different is wrong ... real estate is local, and the advise and strategy that work in one market may not work well in another, and visa versa; that doesn't mean it is wrong, just that it is wrong for that market.

If you hold a second behind an institutional lender, you do not have to payoff the first, you may not need to with any other senior lien, generally state laws allow subordinate lien holders to foreclose, then you may assume a loan, or make payments until a sale or simple hold the property for sale, depends on the state and lien holder.Rules have changed, what most folks know about seller financing doesn't apply any longer, see your attorney.

I have not checked with current holders of the loans to see if it is going to be difficult to transfer titles to the LLC. 

If this is a partner that you want to grow with then I'm lean more toward being more generous and treat this partner as an equal equity holder so that this person is rewarded well and will likely be there again to fund future deals.  

What works for others might not work for you and visa versa.

We just opened our LLC. 1 of us is a US citizen, while the other 2 are international (H1B visa and OPT).

that's all minutia,, vis a vi a first flip.. more important to concentrate on your costs and resale values.