Need help with my closing of a SS

I closed my first SS and have questions… I got a call from the Romeros that they were behind, i offered a SS, i had them deed the property to my LLC. I than pursued my negotiations with HSBC (the lender). The ARV of the house is 160K. The Romero’s owed 135K. But because it was in such bad shape the BPO came in at 120K (so in essence they were negative 15K). I negotiated HSBC down to 80K. Since my LLC was on title, i had my LLC hire me as the RE agent (i’m licensed) and listed the property AFTER i knew i had a deal with HSBC. An agent calls me 4 days later and said she had a qualified buyer, we wrote it up at 117K. Awesome, i thought. $37K of profit! So we closed at a title company. The logic was "i’ll just use the “end-buyers” money to fund the whole thing. Well, we closed and it was beautiful after i paid the selling agent her 3% and all soft costs i netted 29K in the bank…nice. Three days later i get a call from the escrow officer that we had a problem. I was told that this was not going to fly “after” i had my money in my bank account. I was devastated.

Part 2
When i initially purchased (well, my LLC) the property from the Romero’s for 10 bucks. The escrow officer said i was suppose to have closed at a title company and should have legitimally paid for the house (80K)…Hmm, i thought. This doesn’t make any sense. I had to find 80K and I had to find it fast. I found a private investor to lend me the 80K that I initially offered the H/O for the house. Long story short my investor came in and let me borrowed 80K for that day and i paid him 10% ($8000).

Question. Did I really need to close at a title company on my initial closing? (my hunch is Rio Grande Title just wants more fees and have “two” actual closings, rather than just one.

So, in summary, is anyone else having the H/O deed the properties to them? Are you suppose to have the H/O deed their houses to you? If not, how are you suppose to sell the property if you’re not in control of the property? The second questions is, isn’t ok to use an “end-buyers” money to fund the whole deal? I was told i couldn’t do this. Why would it even be illegal? Why shouln’t i be able to buy a house for 10 bucks, have the owners deed the house to me, negotiate a SS, sell it to and end-buyer and use their money to pay the amount shorted??? Do I really need Investor money??? (my hunch is…NO)

They want to make sure you can close the deal.