The lender tracks this information because they want to ensure that their underlying security is insured and they will be informed when you change the named insured.

Secure an option to buy the property later, but lock in the purchase price now.Happy InvestingDerek Dombeck

The primary advantage for most is the psychological security that comes with believing it will better protect your assets.

Talk to people at your local meetups and REIAs to find out what they are willing to pay if you secure a contractGood Luck and Happy InvestingDerek Dombeck

How do you go about collecting tenant rents/security deposits?

One of the most common investments I see in SDIRAS is people lending money, secured by real estate. 

These are debt investors whose investments are secured by deeds of trust on properties.  

I'm curious how I can deduct this from the tenants security deposit?  

Unfortunately i don't have enough capital to feel secure to do it exclusively.

They both insist that there are creative ways to structure this deal so that me and my mother can LEGALLY , and secured by CONRACT, be able to collect the net proceeds, and split it 50/50 as her and I agreed from the start.One of the proposed arrangements I researched and sought legal consul for, and am fairly certain would in fact still be an act of fraud.A broker brought in an investor who proposed the idea of purchasing the Mortgage Note, and giving us the difference, secured of course in advance by a contract where we would agree to forfeit the Security(house) once the note was purchased.