California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

This can lead to more opportunities and partnerships.Market Understanding: As a property manager, you'll gain a deeper understanding of the local market, which can be invaluable when you start acquiring your own properties.Steady Income Stream: Property management can provide a consistent income, which can be particularly beneficial in the early stages of your real estate venture.Skill Development: You'll develop a range of skills from customer service to maintenance oversight, which are crucial for successful property ownership.Brand Recognition: Establishing a presence as a reliable property management company can boost your reputation, making it easier to attract tenants and investors when you start acquiring properties.Cons:Time Commitment: Property management can be time-consuming, especially if you're dealing with multiple properties or demanding clients.Regulatory Compliance: Staying compliant with local laws and regulations requires diligence and can be complex.Conflict Resolution: Dealing with tenant issues and conflicts is an inevitable part of property management and can sometimes be challenging.Financial Risk: There are financial risks involved, including late payments or damage to properties.Market Fluctuations: The property market can be unpredictable, affecting both rental income and property values.Overall, starting with a property management company can be a smart way to enter the real estate space, especially in an area with a clear need for such services.

I am curious at what stage of land development the sale was struck with builder.  

We have a couple ground up projects in the early stages and will be taking that into account when planning.

Fund investors will get their preferred 12% first and then any excess return goes to Dave and his company.  

- How can I best estimate a breakeven point, and what techniques help maintain positive cash flow through all stages?

The pumper are trying to lure the last FOMO to enter the remaining stage of the game.

If you plan to scale at all, that will result in an excessive number of accounts and cards to keep track of.

@J Scott  in our state amounts that over bid from the minimum credit bid are then dispersed to the next in line on the TSG . if there are no other loans leins etc.. excess proceeds would go to the trustor who lost the property... the Trustee conducts the sale for the benefit of the Bene and they receive funds at auction then disperse.. in WA excess proceeds go to the courts for dispersal is my understanding.. in Oregon the trustee ( which is a law firm of some sort) will disperse...

I was also thinking something along those lines, but I am glad to know that you also think that $50k in earnest money deposit is excessive.