IN PA we have Exclusive and Non Exclusive Buyer Contracts. 

Point being - you don't know what you don't know about what you are buying at foreclosures - so you are getting that discount for taking that risk.I would also point out that at 8% interest - VERY LITTLE cash flows well.  

What infrastructure has to be in place to prevent the client from dealing exclusively with the partnering firm once they begin communicating.

The agent isn't probably negotiating a steep discount with a builder. 

Our focus in exclusively on the operational needs of property management.

IE pull the cash out of it so I could go buy more timberland to log.. get payments from my buyer .. pay the bank their payment then when my buyer cashed me out I cashed out the bank and got my equity... for me it was not as much a tax play as a get stuck money out now without massive discount to a NOTE buyer pimper .. who is looking to get notes with massive discounts. 

So they can get a discount rate?

If there is no real estate agent involve we provide the 2% discount back to our customers or we are happy to pay the buyers broker such fee.

If there is no real estate agent involve we provide the 2% discount back to our customers or we are happy to pay the buyers broker such fee.

I work almost exclusively with out of state investors and the number one thing I'll talk about is the risks.