If this is the case he can quit claim his interest in the property prior to sale.

You can tell the investor you have the first right of refusal, but actually, that died with the deed in lieu and your claim is against the prior owner if you paid anything for the right to purchase.

The negative customer service experiences many borrowers have had in hard money, is often due to the lack of standardization in the industry.

They countered with what they claim the land is worth; $47k.

After doing a bit more research, we found lots of guru's claiming everything.

Some will say you just need Liability Insurance, but there are tons of risks with that, since most policies will find carve-outs, limits, and flat out will tend to deny larger claims on technicalities that will have you fighting for your personal assets in court.With that being said, LLCs limit personal vulnerability to potential lawsuits related to the property(ies).

You need to verify what condition it's in and what the seller is claiming for yourself. 

FYI, my offer is all cash, so I can't claim a loan contingency.

In my class I met someone who does general contracting (we're meeting), a couple that does cleaning (commercial and residential), a painter, a couple who owns a custom cabinetry company, and a stager/designer (good to know, but my sister is great at interior design and I'll probably collaborate with her for staging/decorating at least in the beginning).

I am a commercial banker in Durango and one of my colleagues has a customer who is looking to purchase one of two dollar stores.