personal finances and mortgage with local lender How did you add value to the deal?

Based on info provided, rate should be more in the mid 7s-low 8s likely, back of the napkin, with no lender discount. 

My question is that if a deal has a mortgage subject to an existiting loan and a private lender funds the purchase of the enry fee (wholesaler fee/agent fee/cash to seller/etc.)

We're thinking non-refundable, extensions due to tightening lending(at a cost).

What you need to do is hopefully go to the lender's website (that your relative was using to pay the mortgage) and just make payments to the bank. 

Most lenders here on BP will do value add loans on 1-4 units.

We invest in notes but prefer first over seconds because seconds typically carry much higher risk - for example a jr lien could be 100% wiped out in a bankruptcy whereas not happening with a firstPros and cons to all - if you at buying at auction with liens still attached most lenders will want the full payoff or foreclose

Be up front with your lenders about your scope of work and who you intend to hire to get it done. 

When I've talked with the banks with a sub2, I have a power of attorney which gives me permission to talk with that lender. 

To successfully invest in a property for steady income, establish your investment standards, research the market thoroughly, assess your financial preparedness, connect with local agents, property managers, lenders, and other investors, analyze properties carefully, consider various financing choices, do your homework before making an offer, and negotiate and finalize the deal.