It seems the guys willing to sell are under some illusion that their property is worth far more than it is.

This is worse than not having an LLC, because you have a false illusion of protection. 

It is just an illusion with all the hype in tech. 4)< You asked for call structure.

Ill use 2 simple example though.1) Forget to do a federal lead based paint form, and the EPA audits your records....the fine can be up to $100,000 and can incur criminal charges that result in jail time. 2) Simple fair housing violation, $16,000 federal fine on 1st offense.

One will see thousands of "how I made X money in real estate" videos but does not see much "how I lost" videos, which makes an illusion among new investors. 

And the illusion of not paying a fee sits well with them.. 

I get it, you are creating an illusion to the tenant buyer that they are somehow better off paying more each month and hopefully being able to buy a property in the future for a higher price.Well, someone may fall for it.

When you buy it, it costs you money that you have to recover before you can make a profit.When you make extra payment, you're reducing your cash flow, and increasing your costs.That "savings" you think you are making is an illusion. 

It gives the evicted an illusion of power as they got you to pay them to leave but if it saves money on rehabbing the windows, punched holes in walls/doors, and more, plus not worrying about a vengeful evictee, it may be worth it.

And feeding this illusion that all they have to do is fill out a simplified paper, pay some $100 fee and "poof" there universally protected is simply not true or reality.