I challenged the company, suggesting that they can't possibly be making 2000 calls each day and speaking to ~200 prospects per day, generating only 3 leads in a span of 1 week.

I suggest checking out some of the local Chicago meetups:  https://www.biggerpockets.com/forums/521-real-estate-events-...I'd also recommend setting up some coffee meetings with some of the TOP TALENT in Chicago: agents like @Jake Fugman & @John Warren and property managers like @Mark Ainley & @Krystyna Schexnayder and lenders like @Jose Valdovinos & @Zack Karp.

Hello Rocky, who is the repair company you suggested?

California requires an $800 for LLC's that are doing business in California.California law suggests that managing members of an LLC that are a resident of California are considered to be doing business in California.Normally people will suggest opening up the LLC in the state where you are doing business(Normally the state where the property is located at).Others will suggest opening the LLC in a different state such as Wyoming, Nevada or Delaware for charging order protection, business friendly case law, anonymity, etc

And finally, the profit gap can be low as these houses are sold for the median home priceWhat you guys can suggest/advise from your own experience?

I would highly suggest asking the following questions before sending ANY sensitive information: 1.

I'd suggest starting with multi-family homes.

Instead of doing a full 1031 exchange, use your proceeds and pay off some problem debt as @Bill B. suggested. 

Percent of UPB is fairly irrelevant as the buyer will be purchasing the note for cash flow and the rate of return would be his/her major concern $75,000 sale price is 81.5% of UPB, about what I was suggesting using my UPB method.

One thing I would suggest is before signing up for mentoring is to attend one of their 2 or 3 day events.