They stated that they were not a lawyer so they couldn't comment on the legalities of my question and they still worked for the bank so they couldn't give me any more info without losing their job but assured me that I was on the right track, keeping asking these questions and don't stop until you find your answer. 

That is what often happens with many of these Co-GP's and gets dangerous when they are relying on their embellished track record to raise money from others.

Regular schedule updates should be completed to track the progress vs. the baseline agreed upon schedule.

Only thing is it won't be easy to track especially if you have a 10 unit and all the rents are all $450 a month. 

Even if you have a good framework, it's much harder to manage virtually and stay on track.

That would result in both a transfer of cash and associated journal entries.If my LLC doesn't have a bank account and I've been tracking its assets in my accounting ledgers only, moving money for the sake of moving money would seem strange (and suspicious). 

. ;-) I've bought a couple of probates but I found them driving for dollars (unkempt properties) and then tracked down the status. 

However, once you have a relationship built up and solid track record with your private lenders, you should be able to also do 2nd (and even 3rd position).

And historically, real estate has a proven track record of appreciating over time.

It was vital that the house be in close proximity to the one who knew how to do the repairs, because of the technology of our current time theoretically Id be able to monitor and track progress with a trust worthy foreman whos on the job, performing repairs, managing subs, and moving the needle.