Trust are privacy instruments and not asset protection.Anyone see a glaring hole in this plan?

This means that your friend would seller-finance the property to you subject to the existing mortgage which would remain in his name and he'd continue to pay (often through escrow).Lots of caveats with wraps including the "due on sale" clause, so make sure you know what you're doing, but it is an option allowing you to get into the property and refi it based on appraisal (6 mo -1 year) or when the LTV reaches 70% or whatever banks are offering at that time.Even with a relatively small equity position, to be able to get into an investment property for closing costs, and if your friend would extend this instrument for 5-10+ years, it could be a really nice deal.Good luck!

They've picked up a lot of foreclosure plaintiff legal work here recently, in the ever fluid foreclosure mill musical chairs.

@Chris Music,Maryland/DC have great opportunities for investing.

These are the money partners who are most apt to agree to your terms of 100% financing if you present all of the other benefits they will receive and what safety instruments and equity you are offering with the deal.I have been party to hundreds of deals and have never used my own money and it is still very much a win/win. 

There may be a little misunderstanding of the instrument (Land Contract / Contract for Deed) on your and Meg's behalf.

My dad is a contractor and he has been instrumental in helping me buy my first reo property.

My sister and I run a music school and hope to eventually have our own building.

A carried back a note, but did not record a deed of trust or any security instrument.  

Dodd-Frank is a U.S.A. instrument and has no bearing here.Your lender is not likely going to allow you to refinance beyond a 75% LTV (in which case, you are tapped out) and never beyond 80% (which gives you little in the way of a down-payment - 16.5K).As mentioned in my response to Chad above, you can probably use some of the Tenant/Buyer's deposit, but you would need to have a "plan" {read: access to {near} liquid assets} to come up with the refundable portion of the deposit in the event that things go south.