It outlines all the terms of the loan.2) Mortgage or deed of trust.

An "offer" and a "purchase agreement" are the same thing...basically, they are a formal contract outlining the terms and conditions of the sale.

Buyer agrees to use best efforts to pay off existing loans that are in sellers name within five years of close of escrow.)Protection for the sellerBuyer will execute a quitclaim deed back to the seller, which is held in escrow unrecordedHow to protect the buyer in the chain of title and potential future creditors of the seller.For the buyers protection a lien of some percentage (I like to see at least 20%) of the purchase price in favor of the buyer executed by the seller will be recorded a "Sellers Performance Deed of Trust" The buyer will appear to be a juniors lender for public record purposes.The seller is protectedFor the sellers protection a reconveyance of said deed shall be executed by the buyer, which would be recorded in the event of a default upon request of the seller, which remains uncured for sixty (60) days upon written notice of default, has been mailed to the buyerThis would allow the management company to unilaterally remove buyers cloud on the title by using the pre-signed reconveyance if the default was not cured as outlined.

Suggested steps to take or a great general outline from beginning to end.

I would say we get better doing things each year, but here's the mistakes:Not writing a detailed plan outlining goals and alternatives as things change.Trying to do too much all on our own.Underestimating how long it would take to rehab without getting more help.

@William Alvarez You have several options as outlined above, none of which is "wrong" but one maybe more "right" for you depending on your risk tolerance.

Is the seller providing a contract that outlines all the terms of the purchase?

The outline sounds excellent.  

If you have any amount of other assets (own home, vacation property, investment portfolio, etc) there is still more motivation to use a holding company.More prudent advice would be for the investor starting out would be to outline her/his vision: are they planning to own just 2-3 properties or do they want to grow to 10's or 100s of units; what is their timeline and growth strategy, etc.  

In addition extending any credit to your end-user buyers as outlined in these acts is a violation of said new laws.