@Andreas Mirza - As mentioned it was fully my intention to record the loan, but also wasn't sure if this was the norm and standard practice so I just wanted to double check, with the wisdom that can be found on BP :)I have also already checked with the bank doing the construction loan and they are okay with me having a secondary loan on the deal, so long as they are in the first position, which I assured them and my lender that would be the case.Part of the funds will be needed at closing to cover the downpayment required by the bank and to get started on the work, so I could have this go to escrow.

I have a background in quality assurance and regulatory compliance as well as a law degree (not licensed YET!).

You are asking a Qualified Intermediary to acquire and hold legal title to replacement property, so they are going to need assurances that there are no environmental contamination issues to worry about.  2. 

That way, I can get their feedback and assurance on the vendor. 

;)You are right about the variation from block to block and it is most assuredly something that requires local knowledge.

So when I handle your transaction, I am working to assure you end up with a very happy cleint and therefore a strong referral source for you!!

Yes, I've listened to these podcasts where you can use a credit card to buy out a mortgage/piece of property for 800 dollars; I can pretty much assure you that these are about as viable and frequent as sighting the dodo bird in the NYC market. 

I want to provide assurance for my investors every step of the way, and let them know that they are protected.Thank you in advance for your advice and referrals.Minh 

My answer may sound like one from a slumlord, but I can assure you I'm far from it.

Well, if you started, go with it, they collect fees up front on a credit card before you speak to anyone, then they don't abide by the right to cancel or recession periods, charge 500 and then won't continue with the loan request, wanting to start over again....I know, a family member requested and terminated and I spoke to them, assured us there was no charge made, checked later and it was cleared instantly.