This was unique situation but...If you were my friend I probably wouldn't have let you do it like this IDK really...unless I was there;) I am simply sharing my story real quick, which was a valuable lesson to me. 

I would simply lead with that and see where it goes.

Maintaining our relationship through good deals and creating win-wins.

Huge Win

That process was relatively simple, it was a HUD home with the bank asking for 130,000 so we simply offered $125,000 and they accepted.

Their is some serious fine print with these companies, and for the most part they can either wiggle out of doing the repairs, or your damage or problem simply doesn't qualify for  ______ reason.  

To me, Rentals make more sense than Notes simply because I do not have any experience or knowledge of the Note business. 

I hate asking friends for money, but for a potential 1st position at say 12%, it could be win win for at least 6 months

I simply can not see cashbuyers being desperate enough to CHOOSE to deal with foundation issues.

The banks are simply being compensated for the higher risk of doing a commercial loan.