You didn't disclose what your education level in the note space is so presuming you're just starting out I don't think that's enough time to really get your bearings.I think minimally you need to determine whether you want to go performing or non-performing.

You can ask them for a loan with a fixed interest or, you can use TIC (tenancy in common) for your partnership and fully disclose your intent to buy them out eventually. 

Truth-in-LendingA federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.two-step mortgageAn adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.two- to four-family propertyA property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed.trusteeA fiduciary who holds or controls property for the benefit of another.VA mortgageA mortgage that is guaranteed by the Department of Veterans Affairs (VA).vestedHaving the right to use a portion of a fund such as an individual retirement fund.

I am a little curious as to why someone would disclose how well their area cash flows and such if they want to continue to invest in that area without a lot of competition.

On the flip side it may be hard to rent out the other units and you may need to disclose (not sure on this as its public knowledge) this to future tenants.  

Note that failure to disclose a silent partner for Freddie/Fannie type loans could constitute mortgage fraud.

I did not speculate how most of those 90% earned their wealth other than that I though a lot were entrepreneurs (and disclosed this was speculation and that I had not seen any statistics on this).Have you seen statistics showing that a significant percentage of the billionaires earned their wealth via publicly purchased shares (versus shares resulting from being part of the enterprise)? 

(ii) Buyer shall keep Seller and Broker fully informed about the status of Buyer’s mortgage loan application, Loan Approval, and loan processing and authorizes Buyer’s mortgage broker, lender, and Closing Agent to disclose such status and progress, and release preliminary and finally executed closing disclosures and settlement statements, to Seller and Broker.

Nothing was disclosed by the sellers about the basement but I feel they knew there was a problem.

You just need to be careful to disclose your intent to sellers if you’re acting interchangeably as both an agent and investor. 100% smart move to get licensed first.