I understand the concept and how the exchange happens, but I'm still totally clueless about particulars, such as the contract and addendum, potential deals and finding them, as well as the process of making an offer.

You are making 5% on the bank's money, which exponentially increases your returns per dollar invested.Obviously this is a simplistic example, but the concept holds true when you apply it to real life, subject to certain caveats.

The biggest point in all of this, and one i made in my previous post that you did not seem to pick up is the concept of leverage and appreciation that you do not get in the stock market. 

The concept works for nola and it's been done here too.  

Is that the right concept?

I understand your model very clearly, its a great concept.

Once the TS is completed, the property becomes an REO and the games can begin.The concept of concern is written as "Buyer's of Equity".

I was working for the big 4 accounting firms and the concept of getting home before 9 pm a good part of the year was an alien concept.

Perhaps the "fund" concept comes after the first few project specific deals?

It really digs into all  the important concepts and equations in real estate finance and presents them such that I can understand and use them.