How convenient, all of the entities that are supposedly involved in this with the exception of the named trustee (US Bank Trust) are owned by the same company--Lone Star Funds. 

Just like you would do with any non-family contractor working for you:- get them to complete Form W9 for you, as you will need their SSNs- have them provide receipts for materials/supplies and keep those receipts- have a written labor agreement (how much and for what) - pay for materials separately from labor- make all payments electronically rather than cash so you can trace them- pay out of your business account, not personal- issue them 1099s next year if you paid them $600 or more for labor (for the whole year, not per job): https://www.biggerpockets.com/forums/51/topics/1167632-expla... 

A Heloc is best utilized as rehab funding when doing a Value add deal where you buy something, fix it up (using Heloc funds) then refinance and pay it off.

I am currently reviewing the numbers associated with a wraparound mortgage and I need some assistance in determining if they make sense.Can anyone please direct me to the appropriate person who would be able to help me analyze and verify these figures?

A very good local agent would be the starting point of the conversation for me personally.

It's been interesting, because lately a number of people have had this exact problem and we've been discussing it on this forum and personally with others we know. 

I haven’t seen it personally but I imagine it’s some kind of “use us to sell or pay a penalty” clause. 

I co-managed guest experience and feedback at a large fund a learned a lot directly from guests.

Did you actually look at these properties in person? 

How do you conquer book keeping if you both have to your personal funds into the deal?