That is an important step-wise distinction in how the contracts would actually have to function.  

If I understand your question correctly, the first thing to determine is does he want to function as a bank or as some form of equity partner?

So you cant exactly buy a cheap distressed house that you can add allot of value to, but nothing stoping you from buying an ugly house that is functional but simply never been updated.

I guess I just don't really understand what it means and what it's function or reason for doing so is.

I just want to make sure it functions before I start transitioning everything over to it.

We do have one program that we call a calculator; it's a toolkit of simple functions like loan amortization schedule, income multiplier, six functions of $1, etc.

The math is basic, however, and a 4 function calculator and some problem solving experience are all you should need.

I can't recall if there is a fund limit function, i.e. you only have X to spend, stop awarding certificates if you reach that number.If you want to see how bidding goes, look for the results of the last year or two. 

I love the design aspect, between the layout,  taking down walls,  moving things around to optimize functionality is great!  

Normally they won't finance a handy man special but they may call for repairs if it's still a functional/liveable house (and can get a Certificate of Occupancy from the township, which is usually required for financing).