Also, having closed and completed projects with the team provides them with an assurance that they aren't generating a bid, or walking through a house for us for no reason.

You can end up paying an injury out of your pocket.Permits Assure SafetyApplying for a permit does seem like a hassle.

@Edita D.My phone let's me record calls, tell them that you're recording the call for quality assurance and training purposes.I'm not a lawyer, and I know it depends on the state, but informing them they're being recorded should help you down the road.

So, multiply this by "X" properties and you're adding staff and resources to manage this I assure you. 

I recently read @Tyler Flagg 's blog post outlining 6 Easy Ways to be Taken Seriously as a Newbie Investor...well, #2 re-assured me that I need to get a more professional email lol (don't worry, no NSYNC email address here!).  

I look at it as a necessary evil to be able to assure quality returns for myself and our clients.

In my case I quit mostly as assurance to the investors I wasn't going to be half committed to the properties.Originally posted by @Jay C.: At your rate in a few years if the market keeps going your name will be in lights.

Custodian involvement is not in any way an assurance (guarantee) that prohibited transactions will not occur.There is no substitute for the investor's own awareness of prohibited transactions.

Have a professional do it under containment (plastic containing walls, air scrubbers, etc.) and you can be assured that it is not going to get you sued in the future. 

I can assure you that guy is not flipping 2 houses a day..