They recommended I use a quit claim and never mentioned a grant deed (nor did I see that mentioned as commonly used for family transfers in my own cursory research).

Very common in India to have significant wealth tied up in gold jewelry.

That is it, and only once was I actually asked to produce receipts, which I did.I don't see it as such a big problem.With bigger institutions I find this very common, I too recently had a lender require an organized list of repairs that I have done with the house within the 90 days in order to close.

I've lived in some rough neighborhoods myself over the years, so I can deal with a bit of roughness as long as it's not extreme.

The average interest rates on the loans are 7.38 percent which is extremely high compared to the interest rates I have on other props that I have just refinanced.

I don't know if an arrangement like this is common in the real estate market or goes by a certain name, i mean certainly i'm not the first person to think of this, so what is this called, and what are the typical terms that the investor would look for?

Think of the land trust saying yes, I own the property but it is "In care of: John Doe""Illinois Land TrustIn Illinois, and in five other states, legislation has been enacted that creates a special type of trust, commonly referred to as an "Illinois Land Trust".

The cost of building these days is extremely expensive. 

The reality is there are MUCH BETTER properties out there than buying this POC at any price.If we are having to come up with extreme examples under which this property might possibly work it is a loser.If you change the layout etc. it still is on a crappy sloped lot.Any property manager will tell you these types of properties even after being rehabbed nicely are hard to rent out to quality tenants.On value add deals the investors I talk with that own 100 to 150 units at a time go for buildings that are at about 50% to 60% occupied.The sweet spot (as they call it)where all the copper and electrical is still there and some tenants are paying for cash flow.The buyer can convince the bank that the property is going down hill to take a lower price and the seller if not the bank has already given up on turning the property around.Over time the new buyer can rehab each unit one at a time to turn around while having cash flow.

Sending photocopy of check (or scanned electronic copy) is common practice.