Ok, I have purchased leads once in my tenure as a lender from Lending Tree----I spent 6 figures a month to purchase leads for me and the others in my office---I learned shortly after engaging Lending Tree that they had there own lending division (lending tree mortgage) and I suspected that they were "cherry picking" the leads and distributed the rest to their customers (Although these leads were semi-exclusive, all of the clients had been contacted by "somebody" else [or several somebody elses]).

I have been addicted to the real estate industry since I had my first taste in the closing dept. for a loss mitigation division a few years back.

For example, I come from a family of real estate developers, but I was ambitious to learn rapidly and work for others in the MF development domain, so I obtained my first job (asst. project manager) for a division of KB Home (Kaufman and Broad Multi-Housing) that developed in-house apartment projects.

I was upfront with him about this also.First of all, his broker is still responsible for his agents business no matter what.Next, he didn't have the right to do property management if his broker didn't approve it and didn't get some part of his commission - agents don't work on their own, only as AGENT OF A BROKER.It's not red flags - it's all illegal to start with and you have recourse if you contact Division of Real Estate in the state where business was conducted.So, if you contact the broker (PM agreement must be sign on the brokerage contract) and tell him the story, I'm pretty sure the broker will refund you 100% of your money.

As far as a sub-division is concerned, if you have all separate utilities (gas, water, electric, sewer) and result of the sub-division is all conforming R-1 lots, then that would be the avenue to proceed. 

It sounds like your conversion costs are minimum and that the present layout of the home makes a division quite easy.

an example from where I live If you are contacted by someone other than the OST Unclaimed Property Division, the maximum fee they can charge you for helping you claim your money is 25%.

Higher income areas where the sub divisions are more well kept but housing costs are higher? 

They have a commercial division that does flip and short term loans. http://www.stoutlending.com/

In NJ, it’s the Division of Consumer Affairs.