Many debt collection companies have funds set up or just this purpose.

Counterproductive to your end game.Roll the IRA into a self directed version and buy the property with IRA funds (you can get a non recourse loan too).As @Christopher Phillips mentioned, every property needs to cash flow with at least 70% financing or it is not a good deal from a cash flow perspective.Also, this $700 or so cash flow you are quoting, does that take into account all the expenses?

Im new to real estate and have been looking at different ways of getting funding and am not sure which method to pursue.

Again my questions is, should I be concerned about the current landloard transferring these funds to me?

What I am looking for is if there is creative way of raising sufficient capital (institutional?)...

HER PARENTS BOTH HAD ALZHEIMER'S,HER DAD PASSED AWAY IN DEC,AND JUST TRYING TO KEEP MY PROMISE TO HIM THAT I WOULDN'T LET ANYTHING HAPPEN TO HER,BUT THE MONEY I HAVE ALSO CAME FROM A IRA FUND THAT MY DAD LEFT ME IN APRIL WHEN HE PASSED.I REALLY WANTED TO BUY A HOME WITH THAT MONEY AS A DOWN PAYMENT,BUT IF I THINK I CAN GET IT BACK LATER THEN I WILL BE THE HERO FOR NOW ANYWAY.

He wanted me to pay "lawyer fees" before providing funds for the deal I presented him.

If you are really going to settle on this property - you could ask the owner to give them a 60 day notice of rent increase - send this notice effect September 1st, (don't miss this mailing) raise the rent to the number you want - if the tenant agrees to accept the rent increase - great - if not - you would be in a position to eviction them based on the non-payment of the increase or they will just move - you may want to say in that increase rent notice that there are plans to improve their living conditions, supply new appliances and whatever you plan to do.Do this will help get what you want without vacancies and still have a tenant who will be happy to comply to the increase.Cash flow is King - don't kill the King.Charles

I plan to gradually fix up the units and then raise the rent progressively until we reach market level which is around $425 for 2bd/1bth a month and $500 for 3bd/1bth.

It was listed on Thursday, I saw it Friday and emailed a few HMLs to ask for proof of funds letters to go in my offer, and I need to submit my offer tonight and I haven't gotten any letters back.I've already been pre-approved.