What bad things can happen if the mortgage holder gets upset with this arrangement?

That money should transfer at the closing, unless your attorney has some other arrangement setup.

Typically, my PM will gather all the tenant contact info and go make arrangements, etc.

Get your flight arranged for Monday morning.

I am a school Principal looking to make money work harder and plan to arrange my finances to BRRRR single family homes to begin my journey.

The fund is for holding costs, the rehab and all the miscellaneous things that come up in a flip.So here is how the funding works, He put me in contact with one of his partners who his company uses and they help start up business (such as flippers) get funded through unsecured lines of credits.These people are consultants who arrange financing on your behalf and they find you different financing options by presenting your information to different companies to submit for loan requests, Loc’s, and Credit cards.

He wasn't happy about having his move in delayed a few hours while he arranged the transfer.Sounds like poor communication on the part of the property manager. 

If all offerings required public company disclosures and audited financial statements, it would be cost prohibitive and we would not have many private market opportunities.Regardless, private offerings are the wild wild west and we all see problematic offerings all the time with misaligned interests, aggressive underwriting, insufficient disclosure, risky debt structures, unreasonable sponsor compensation, shady tactics, problematic legal arrangements buried in 100+ page private placement memorandums, sponsors who don't pass appropriate background checks, and even well-intended sponsors who lack the experience or business acumen to be managing peoples' savings. 

Several professionals, I would recommend that you discuss your idea and structure with- Corporate Attorney (which your doing and kudos to you for taking that step to arrange before posting on BP about it)- Property Insurance agent. 

I reached out to the agent saying that we have other agents watching for properties that fit out needs and we do not want to get into an exclusive arrangement in case another property comes around . . . will see what she says since we have not signed the offer package yet.Another reason to read all 40 pages or so when the come in for signature to make sure you do not miss something like this . . . none of past offer packages have had exclusive agency clauses.