A license is required if there is a way for the buyer to vacate an option-to-purchase contract, and the individual begins performing real estate functions such as marketing the subject property, bringing in a buyer, etc.

There is always risk in non performing notes, borrower could file BK.

He performs a ton a searches for me both on the investing side and retail side.

This just sounds like it defeats the whole purpose of having a business entity and the need, both for legal and accounting reasons, for operations to be performed within the business. 

By nature I'm not a systematic thinker, but I know I perform at my highest and enjoy having systems and structure.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

For instance, most of the time my properties have always been much better performers in the maintenance department than the numbers at BP would lead me to believe. 

@Isaac Bazek-Buy, Rehab, Rent, Refinance, Repeat by David Greene (RE)-Real Estate Investing Gone Bad by Phil Pustejovsky (RE)-Investing in Real Estate by Gary Eldred (RE)-Quit Like a Millionaire by Kristy Shen (FI)-Playing with FIRE by Scott Rieckens (FI)-I Will Teach You to be Rich by Ramit Sethi (FI)-The One Thing by Gary Keller (Inspiration)-Am I Being Too Subtle by Sam Zell (Bio)-Shoe Dog by Phil Knight (Bio)-The Big Short by Michael Lewis (Business)-Liar's Poker by Michael Lewis (Business)

Here's a look at the numbers outlining the sustaining performance of the property: Monthly rent: $950PM fee: 9%Mortgage amount (taxes/insurance escrowed): $535Reserve for expenses: 15% = $142.50 (a little lower than usual since we took care of all cap ex items in the rehab)Total monthly/annual cash flow: $187/$2,244Annual ROI: 18.13% We had some private investors in on this deal as well, and while we were not able to give them the bonus this time around we still gave a solid 10% guaranteed APR (~3% cash-on-cash over the 3.5 months of this project).

You buy an undervalued house that needs rehab, perform rehab, rent it, refi and repeat.