Quick question. 

Sellers want to close in front of a notary with no closing costs...there giving me a quick claim deed only.

If its east coast like new York PA New jersey.. the chances of loss ARE GREAT.. because the time it takes to get your collateral back.. this is, as I posted on your other thread one of the things I have seen going on in CF space just making loans all over the country with no clue or thought to the default scenarios and the time it takes to corral your collateral.. by the time you do a 1 to 3 year judicial foreclosure in these states your collateral could be totally trashed.. stick to deed of trust states with quick foreclosure times.

Make sure to read the Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingIf you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

I was looking for the magic formula to quick riches.

Brandon Turner has written two excellent reference books on both Ultimate Guide to Real Estate Investing and Managing Rental Properties.

There are a lot of great resources here including the podcasts and I believe there are a few free books as well (including the Bigger Pockets Ultimate Beginner's Guide).

They would like to move quickly from their larger house to a smaller house, and are willing to negotiate.  

A quick call to a knowledgeable attorney or maybe even a licensed mortgage broker may help with the answers.