@Javier OsunaThe x% rule is just a sliding scale that will give you an idea of how profitable the deal is probably going to be.  

What this does is binds the Partners/Members of the business, in the event that the majority of the Partners/Members decide, to contribute subsequent capital to the the business.

It is still a 2nd and subject to the performance on, and subsequent actions from the first lender.

the property was acquired during or subsequent to the most recent tax filing year, the lender must confirm the purchase date using the HUD-1 Settlement Statement or other documentation.

In great detail they will go over the rules pertaining to owner-occupied properties with respect to equity skimming, and how to avoid running into issues with them and subsequently the attorney general.And yes, it is a great opportunity to meet other real estate investors in your area.

For example, you may pay close to market for a home (ideally you would not) but if the subsequent housing expense (P&I, PMI, maintenance, insurance, taxes, etc) are below your current housing expenses then you can bank the difference and put it towards your next property.  

I subsequently called a real estate attorney, who didn't seem to know anything about this rule.

So increasingly, the answer for WHOLESALERS is "yes" - get your License, which also means always disclosing that status to every Seller and Buyer being dealt with.But if you are buying the Property AND taking Title, no License will be required by you to put that property up for rent, or to subsequently sell it.

Consider a sliding scale, 20% for 2 years, 18% years 3, 4 and 5, this is a "front end load" that makes up for the lower profits in the beginning but as you improve the property and cash flow they can still make more at a lower rate in profit shares. 

In the majority of cases, if the foreclosure is in the first lien position then the subsequent loans secured by the property become unenforceable from a collection standpoint.