During the closing process of my last MFH I received two quotes for premiums: one agency provided by the lender, the other quote from the agency I always use.

or perhaps just give the judgement to a collections agency?

Assuming you have no other consumer debt (which is a reasonable assumption given that you don't even carry mortgages -- it would be odd for such a person to have a car payment or carry credit card balances) It'll work out such that your net positive cashflow must be ballpark 2.5x your personal housing expense in order to qualify, and continue to qualify, for Agency 30YF type financing.

Government agencies expressed alarm about the condition of the building, including a 1941 report from the Army Corps of Engineers warning of failing wood structure, crumbling masonry, and major fire hazards.

@Asher Pearl for reporting them to their licensing agency, afaik, there’s no formal process - just a letter.

I am truly surprised there are NO agencies focused on this niche!

Does anyone have experience with using network marketing agencies to fund their real estate ventures?

He also owns an insurance agency and some investment properties.

When lending to an LLC, they will still look at your personal financial statement to see if your balance sheet will support the new loan since it is recourse debt (unless of course you get agency debt - non-recourse). 

You disclose your agency, but they will see you are the buyer and the agent and you indicate that in your cover email for your offer as well.