@Ray Martzloff , funny you should post this question, because I just posted a thread about a previously unknown/undisclosed underground oil tank that was found this morning during my formal inspection on an REO I have under contract. 

When you submit your offer make a formal statement of the use of a company you think will do a good job.

However, an attorney need not be physically present at the closing (2002 Formal Ethics Opinion 9 (02 FEO 9)).The North Carolina State Bar determined that a non-attorney is engaged in unauthorized practice of law if performing various functions related to a residential real estate closing, including, among others: (1) providing an opinion as to title of real property, (2) explaining the legal status of title to real property, (3) giving advice about the parties' rights and responsibilities concerning matters disclosed by a land survey, (4) providing opinions or advice regarding the parties' legal rights and obligations, (5) advising parties with respect to alternative ways for taking title to the property, (6) drafting legal documents, (7) recommending a course of action to a party under circumstances that require the exercise of legal judgment, and (8) attempting to settle a dispute between the parties that will have implications with respect to their legal rights or obligations (APAO 2002-1).However, a nonlawyer may: (1) present and identify the documents necessary to complete a residential real estate closing, direct the parties where to sign the documents, and ensure that the parties have properly executed the documents and (2) receive and disburse the closing funds.

Where as when you're dealing with a friend in this business things are much closer to 'hand shake' level.I can tell you that if this guy needed $1m I'd have no problem sending him a wire and using a simple one page 'IOU' to formalize our deal. 

You first form a LLC in a anonymity favorable State, then form all the other ones with that first LLC as the Member.

It is possible you could get more for those sfrs if you package them as formal turnkeys otherwise the 48k sale was likely what it was actually worth.

Since you are planning on living there and NJ is judicial foreclose state your hard money options may be zero. 

@Nicholas Chan should flow up through the structure to protect the formalities

I've seen countless scenarios where investors pay for the big expensive multi-LLC setup, and the attorney advises them to follow all formalities, keep all funds separate and operate them as separate entities.

Try to make them fill the form mentioning their identification proofs with the copy of police verification which is necessarily required as a formality.