Now, I am not sure if the banks I have dealt with have just made it complicated to explain to new comers or I did not understand (after repeatedly trying to understand their process) it completely, but it seems too complicated.

Sounds like a huge win to me to get the 30+ day booking. 

So, if a basement has $10k of value and you spend $10k to demo and renovate it to make it worth $18k, you have lost $2k in the process.

Could one buy a pool of mortgages from FNMA, split that pool back up into individual mortgages,  then negotiate with the homeowner to purchase their own mortage at a discount, removing a huge stumbling block in the real estate market.

Planning to buy it now, rent it out for 4-5 years and sell it when its time to buy the bigger house.Do you think its financially wise to go through this process before the big house purchase?

I am also in the process of getting these properties into LLC's to minimize liability since these are now quite hefty assets.

If you plan to be there at the property for the entire rehab process, then go for it.

Me: For new business relationships I insist on a face to face call to help with our DD process and to match faces to names to you ID etc. 

So far just finalizing the purchase process and I believe I've adhered to all of the requirements thus far.

According to the managing broker, if I put my head down and worked, I could make $15,000 in my first 12 months, give or take, because of the process of getting my foot in the door with meeting people, advertising, and so forth.