My partner would burn through a truck and had 1500 dollar cell bills per month in those days.So I told my partner ( the logger) Hey let me bring this into the the 1990'S.. 

Their great investment crashes and burns.

@Edward Burns - While your concern has not been proven out in court, to address your concern, people that do not want to rent to these types add an extra layer of protection.

One of my investors got burned badly when going down this route and having a clear outline was the one thing he would have changed. 

Imagine you put the $100/mo aside telling the bank it’s “insurance”. 2 years later the house burns down and the account has $2,400 in it.

Some people do fine without using a buyer's agent, but a lot of people also get burned in scams like this which are becoming more and more common. 

It's going to be heavily scrutinized by people like you and myself for the obvious flaws that it has.However, he's giving realistic numbers, he's not out here saying these newbs are going to make $50k per deal, if he was, I'd be burning him at the stake myself.

For instance, if the tenant accidentally sets a fire and burns the property down.  

We are looking to purchase a burned home that was previously a rental from one of our investor friends.

Its the same thinking as any other kind of insurance, you insurance issues significant enough that you could not cope with them if they happen such as the house burning down.