Operating expenses include taxes, insurance, management, maintenance, vacancy expenses, advertising, utilities paid by the owner (at least during vacancies, rehab, etc), evictions, court costs, entity maintenance, legal fees, common area upkeep, lawn care, snow removal, office supplies, damage done by the tenants (in excess of the deposit), lawsuits, capital expenses (although not technically an operating expense), etc, etc, etc.

There isn't one - it's a gray area that will only be answered when there is a lawsuit.

Should we just show the forged signatures to the broker and tell him that we can sue him and put him in jail to avoid the lawsuits?

Operating expenses include taxes, insurance, management, maintenance, utillities paid by the owner (including during vacancies), advertising, entity maintenance, legal fees, evictions, court costs, capital expenses (not technically an operating expense), damage done by tenants above the deposit, lawsuits, office supplies, etc, etc, etc.Mike

That resentment could come back to haunt you in the form of a lawsuit and if you end up getting sued.

You behave this way because You Don't Respect Professional Real Estate Agents/Brokers.Would you engage 2 lawyers for a lawsuit to see who can get you the highest settlement, knowing that one won't be paid?

For example, can subtle technical errors in a contract, addendum, or assignment of contract result in a lawsuit against the wholesaler?

Violating the fair housing act can be very bad.You can get a personal umbrella liability insurance policy that will give you some protection against lawsuits.

Holy cow.Since I suspect many people get into Subject To investing because they have poor credit, their ability to re-finance is probably below average.I wonder how many people's lives have been damaged, and how many lawsuits have come about, as a result of this technique....

A lawsuit against the LLC could only go after the LLC's assets, not your personal assets.