He is having trouble getting them to perform on a contract so the solution is to write a new contract to lease to own?

I'd clean it off use a solution that has mild bleach in it.. check the crawl space below and exterior walls, or windows, or any roof leaks that are draining toward that area.. 

They also have a sister company called MLA Labs that can do soils tests to aid the structural engineer in designing a proper solution for the problem.  

I would not repeat and would recommend an alternative solution primarily because it forces you to be a short-term investor in the stock market which is no better than being a short-term investor in real estate (not a rehabber, but somebody who banks on appreciation/cashflow over 3-6 mos instead of 3-6+ years).If a good property comes along you have to liquidate stocks immediately.  

I met with my estate attorney and he has given me and my partner the royal treatment.

There will likely be favorable tax consequences of selling a rental property instead of outright flipping: 1031, capital gains treatment, passive income, etc.  

Scott, my position is that banks' underwriting models are seriously flawed and that banks create booms and busts in real estate and I have written a whole 200 page book to outline the problem and recommend solutions to eliminate booms and busts in real estate forever with the engagement of private money.What position are you taking then?

I would add to the list a foundation water treatment and a sum pump.

You need to be able to show that you have the funds available in order to put a property under contract.I would appreciate it if someone could offer me some solutions to these statements.Thanks in advance.

In a case like this its much easier to come up with a solution if you can actually see what's going on.