Your city is normally the one who sets licensing standards.At the state level there are restrictions on being a property manager for a property you do not own.

Normally, if they don't know you, you are going to have to use more earnest money that that.

In my market they normally list the owner as "client of office" and its always sold "as-is".

I give them more control than the mutual fund managers who gamble with their 401k everyday!

Normally, it is 5%.

No cash flow to really cover your backside if you do the wrong deal.Granted I started investing in CA and felt rather well trained when I moved to a more normal market.John Corey

If the buyer is looking at cash flow only he is not my best buyer b/c he is bottom fishing and in a solid real estate market the bottom fishers are normally buying properties in declining areas of town that have little to know chance for appreciation.

I assume that normally I would never have to pay taxes on this money because it is borrowed.

If something happens in your property and -the tenant (let's say) sues you, -they have to win the suit, -you refuse to settle, -it's not a situation of negligence in which case you're personally liable anyhow, and -the judgment comes in above both what your insurance will pay and the value of the home owned by the LLC...then normally the rest of your assets would be shielded.

The good part is that the leads are normally sellers that are desperate but are not in foreclosure yet.