@Ernesto Hernandez  If you are not very experienced I would suggest getting a good attorney to handle the title work.

Does anyone in the network know of a reliable and reasonable construction company in the Orange County / LA area that can handle "make ready" repairs? 

A mortgage lien and note are surely only one way to handle private money, especially when taking a loan from family / friends, or when a private money lender wants you to keep the loan out for subsequent flips. 

We recently have reached a new problem that we need help handling. 

The less you borrow the easier it will be to handle a downturn, but that goes hand in hand with a lower mathematical return.

My Question:How would you handle her security deposit?

Posting and publishing companies do the official notices and these are hired out by the trustee or attorneys handling the foreclosure.Cash for keys are typically handled by the real estate agents hired by the asset management companies for the bank.

Keep in mind that it would not be "your" investment, an IRA would own the property, the income would belong to the IRA and you personally would not be allowed to benefit from the IRA or any investments it owns. 

I handled all the paperwork for both transactions. 

I would prefer not to do that if possible, because I don't want to expose myself during this brief vulnerable period without protection, but I also don't want to break any laws or LLC shields if this process is not handled correctly.What are your thoughts?