Will the 6% you agree to pay a Realtor be a good return on investment versus the Buyer pool that you get exposed to. 80% of buyers will use a realtor.Lastly, a few years back I had an agent approach me to list my home and he was willing to take a 2% commission.  He was a newer realtor and I had experience reviewing offers because I’m a full-time loan officer.

The problem with these set ups is you agree to keep your mouth shut if things go bad, but be an advocator if things go well.That's in the language when you deal some of these turnkey folks.

Agree with @Nicholas L. here.

I agree, thank you for the advice.

Without anyone being victimized, I don't see how this would fit the definition of a fraud since its all agreed to and the borrower eventually gets the money they are owed as agreed.

What do I say to them on the phone and how do I say it to them so that they agree to end the lease and leave in a peaceful manner?  

Prior to finding this out, we agreed to honor all current bookings after taking ownership (we would get the income).

Quote from @Ryan Moyer: It's $558 and anyone saying otherwise is wrong :P I agree - it's your total "host payout" plus the "host service fee" added back in. 

I agree I think the only way to become a developer is to do your first project.

I agree with that suggestion (if the numbers make sense) as a good middle of the road option to still maintain some SoCal appreciation.