After the training they go out in masses and start calling and emailing people and essentially blackball themselves but also make it much more difficult for new investors.

Other useful material covered including repairs, permits, financing and paperwork are covered.  

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

Essentially I am leveraging my income to build up my rental portfolio, any advice?

Essentially road map building

I worked for WAMU as an executive in 2008 they were bankrupted by Chase essentially.

We've already agreed on rates, and I'm going to ensure all the paperwork protects me just like it would any other lender (proper contracts, personal guarantee, etc)The part I'm unsure of is what type of entity it should be under, just a regular LLC?

These are essentially a cash play so you would, need to have funds previous to the auction.

Found the deal with out a agent but used a local one to help with paper work and showings Would of help to have a more experience agent to help things go smoother

It just means you were able properly fill out paperwork and pass a test.