While my background as an auditor is within the retail/QSR/manufacturing industries...I have had some experience with real estate audits (no offense to real estate CPAs but AR and inventory is way harder when it comes to audit testing!).  

Their standard is not 10% flat fee - the standard is closer to 3% of gross collections, but that 3% covers only Normal Business of Administration (accounting of rents received, receiving and recording of bills, payment of bills and expenses for the property, ensuring taxes are current, and being the front line of contact for tenants).

I have not been on the front lines of trustee sale for many years..however I have to think this had negative impact on all but the borrowers. 

It doesn't seem too efficient in your approach, no offense.  

And buying renter's insurance is one of the worst offenses to that rule.

He took offense to my comment that Most of what was available to the small investor in terms of non performing notes was picked over junk, which was fine, he’s entitled to his opinion.

Also, if you are trying to market investors, no offense but investors are always trying to get a good deal and a big win for them, not for the sellers. 

No offense but $500K of net worth is obviously nice, but not enough to draw lawsuits on it's own. 

Title XLVICRIMES Chapter 818 SALE OF MORTGAGED PERSONAL PROPERTY; SIMILAR OFFENSES View Entire Chapter 818.05 Sale, concealment, or disposal of property held under contract or conditional sale; penalty.—(1) No person who is in possession of any personal property under and by virtue of any contract or conditional sale or otherwise where the title to said personal property does not vest in the possessor, shall sell, conceal or dispose of such personal property without first having the written consent of the person then having or retaining the bona fide title to such personal property so to sell, dispose of, or conceal the same.(2) Any person who shall violate the provisions of this section shall be deemed guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.History.

The OP will be opened up to criminal prosecution for a federal offense by committing mortgage fraud.