This honestly seems like it could be a cash cow if the numbers work out and you do it right.

Up till now I have always worked directly for someone else, so having people work with me is something I'll have to experience and work out the kinks as I go.

I Try different workouts, curiosity takes me there.

Things rarely work out perfectly, and they are taking some of the liability off your shoulders.

Empathize with Bill and the seller's position and suggest that if you can't get back the funds you at least want to help the seller's case in court, work out some sort of deal, talk about a master lease option, basically anything that does not involve the idea of litigation. 

I'd love to see it work out for you.

My question is, how will this work out at the title company and do both parties need to sign the letter of agreement contract?

Whatever type of fee structure you all work out is a matter of negotiation between consenting adults.

I'm meeting up with a Reator family friend who specializes in Orange County to see if I can find anything that would work out, both by the numbers and close enough to my job for me to live there. 

I am mentally prepared to lose money as that is a risk of investment and it may all work out in the end but it has been a roller coaster of emotions!