I have a potential deal that the owner owns the house but still owes the Lot.Seller has agreed to pay taxes that are due and also pay off the lot when He gets cashed out.How would the purchase and sale agreement would look (in regards of the wording)or what paper work would i need to have in writing that she will pay off the Lot and taxes at closing or after getting paid?

Most people will bring paper/plastic and a cooler I would think.

You can write your own loan, it's faster without problems and you know the money is there.Even if you are approved, there are other things and people that can stop your deal;  an underwriter looking only at your paper work, an appraisal, the the car loan you just got, your credit score going down for some reason ..... 

I tried to flip the paper, advertising the property for a 12% cap and the response that I got from people was it was too good to be true for a NNN property. 

that value of cash flow beyond which you want to throw-in the towel. eg: if you set your cash/cash rate minimum to be 10%, then you're done when it becomes < 10%. 

Everything involving money is done on some sort of paper document so that we have a record of every transaction.

Does anyone have their company letterhead on their yellow paper direct mail piece?

Otherwise, the lender will likely take their P&I and "trust" you to pay your taxes and keep up the home-owner's insurance you agreed to carry when you signed papers at closing.Mind you, I haven't purchased a primary residence since before the crash.

Now I want to know what paper work do I need from contractor before I pay him the remaining amount.

  $36k is not much to be renovating 2-4 units, and the extra paper work and fees for a traditional aren't that imposing.