Courts make a distinction between permissible liquidated damages clauses, and impermissible penalties imposed on tenants to to force their compliance.

John correct me if I am wrong on this, as this is a key distinction as I understood from your post.As for the protection necessary from an LLC.

@Tommy Martinez  you have two distinct typesone the RIA type were you may have someone own the RIA or multiple rias they make money with the member fees excetra.. but will also create a lot of deal flow form newbies who view them as experts.Then you have the TV gurus  like rich dad ,, Yancy , fortune builders. this is a HUGE Money business make no mistake MILLIONS are made by these folks. with all the newbie wanna bee's paying big bucks thinking this is some secret sauce

Consider adding hard money as distinct from private money

This is a distinct disadvantage when working with a custodian as opposed to a quality advisory firm that specialized in such plans.  

If you follow the LLC rules (treat it like a distinct entity and not your personal piggy bank) courts aren't going to set it aside and "pierce the veil."

Scott:Buyers breach and damages is separate and apart from agents damages/actions.Two distinct cases.

I see a distinct advantage in having some properties free and clear as a means to help get through difficult months.

I'll say it again, dealing in real property is different than personal property, I've not seen a wholesaler on BP that can make those distinctions of the differences.

A "Self Directed IRA" is a descriptive term, not a legal distinction.