Never pay an upfront fee.You didn’t mention your state but understand that with little exception, an NMLS registration is only required for consumer-purpose loans.

Remember, in this model, you are planning on holding on to these properties as rentals so pay now in quality, or pay later in headaches and repair costs.

You’d need to check the local laws to see what counts.Tenant Violations: If they’re breaking lease terms—like not paying rent or subletting—you might have grounds to evict.

I wasn’t trying to be long winded, with too much detail, in my initial post but I actually did this method on a fix and flip.

The reverse mortgage company wants buyout and I dont have over 200k to pay out.

I noticed that the previous owner let them pay half the security deposit and the other half later, which is a red flag.

@Jon D. some questions, the answers may help you better focus.1) Why did you pay your primary mortgage off in the first place?

Hey BP family, I'm currently trying to help out a family in need from having to foreclose on there property by taking over subject to, it has a high interest rate although the entry is around 20k I want to wholesale this ultimately Is it possible for me, to disregard my initial assignment fee to get a buyer asap and add a 2nd lien on the property as my fee? 

  ( i have owned 3 brokerages over the years and will stand behind those numbers).in the RE training space my thoughts are :5 to 10% of folks that pay for training do anything with it.

FWIW Its California , you probably need a permit  to do just about anything as long as you pay the fee