How does the owner transfer the note or land contract to me?

You do a direct transfer, and voila!

The real difference is that the lender has the right to call the loan if you buy a property subject to based solely on the fact ownership has been transferred. 

I have five rental properties that I want to transfer to an LLC.

I'd not advise doing a DIL with your granny, that is a forgiveness of debt and tax issue, she can transfer interests to you as an estate transfer and assume debt as your investment.

Out here in California, it is cheaper in most instances to just transfer utilities to a new name rather than turn them off and turn them back on.

Lucky for me Texas is a reciprocal state so my license transferred here when I moved.

So, if I have a motivated seller with 100% equity in the property and use seller financing, would the seller transfer the deed into my name and I (my tenant) makes payments (and the difference is "profit" to me)?...

Property would transfer directly from them to the final retail buyer.What kind of contract am I describing here?

I can transfer anywhere in my county under Prop 60 but Prop 90 allows me to take it ONLY to the Counties that participate.