As the lender, you must gauge your risk tolerance and decide whether you wish to risk lending on a project and, if so, what return you require.

All the houses are $300K+ so those of us in the SFR for <$1,000/month club have a product that is in demand and faces zero threat from developers.

I'n the process of my research, I notice many reports of "SALES INVOLVING GOV AGENCIES &......." that do not reflect a purchase/sale price...just a bunch of zeros.

And you got to like FL weather and zero income tax. 

I am just getting in the game with little knowledge and almost zero experience with REI. 

One of my partners has done private money lending for decades and has written credit policy for lenders.  

If she 'sells' the house, the lien will still be on the property and will have to be settled before a new title policy can be issued.  

Then your late fee policy will include all charges.

Its not ideal but thats what he is comfortable with and it pretty much puts him at almost zero risk. 

Or if you take title on a quit-claim, you're getting whatever interest that seller had, along with any clouds on that title.Most common way is to have a traditional closing that clears title and pays off any liens, issues a title policy, and gives you true marketable title - that is only encumbered by whatever you have encumbered it with (mortgage, trust deed, UCC 1, Promissory note, etc.)If you don't / can't go through traditional title (say for example, you buy at a tax foreclosure sale), I'd say it's best practice to go through the quiet title process.