@Phil C. 

Originally posted by @Elizabeth C.

I know the fed had halted 1099 c  for a while .. in the foreclosure crisis.Deed in lui is a good option ... most lenders will try to get this investor to sign some kind of note to make future payments...

Or would he be able to close with the B to C end first then A to B end. 

I am interested in finding a grade C property that I could turn into a B+ or A- minus with some love and TLC. 

So let's say, it is a 500,000 investment and you guys agree to a 40% (partner A) for you, 30% (partner B + C) for each money partner and an 8% preferred return.  

I have been searching and these are the kind of houses that I am seeing on Craiglist, MLS, papers, etc..30K older homes in C/D neighborhoods that will rent out for about $575 - $650 with $5000 worth of renovations.70 to 100K 70ish homes in B/C neighborhoods that will rent out for $850 to $1200 depending on price and other variables.100 to 250K 80/90 ish homes in A/B neighborhoods that will rent out for $1200 to $1800 depending on price and other variables.Duplexes seem non-existent or as the podcast gurus have said are a "Waldo" property with too much downside to take a gamble.

However if you haven't done enough deals to feel comfortable with the process then @Leigh C 's idea makes a lot of sense. 

BP's search function sucks unfortunately so have fun searching for him.Let me tag a few folks for you above:  @David C., @J.

Assuming that the C in CRE stands for Commercial that would probably work well for you too.