Buying a Property via a Deed Transfer

[Richard Rodriguez]

Let's say the owner is pressed with a time-sensitive matter because they need money asap.

I am willing to loan them the money but need collateral so I want to have them transfer the deed. They also want me to buy the house from them. 

I presume I would then execute a purchase contract with them which will give them collateral that I will buy the house and if I don't, they will pay me what I lent them plus a fee for lending them the money, as well as I, transfer the deed back to them.

1. So to summarize:
2. 1) Seller deeds the property (via a notarized quit claim deed or warranty deed?)
3. 2) I lend them the money.
4. 3) I execute a purchase contract.

Is this the best way to achieve this?