This is the problem acting as an unlicensed agent.

Though most unlicensed investors probably hate the licensing laws, they are LAWS, and practicing real estate without a license is illegal.

I did get a kick out of this one: Name Removed - (unlicensed) assessed a $25,000 civil penalty due to the unlicensed practice of real estate.

She know's I'm not an agent and if necessary I could have said "based on my unlicensed, unqualified opinion, this place might be a great deal for you, but you should seek the opinion of a licensed professional before proceeding."

If it were me (unlicensed investor,) I would be in Central Prison on felony fraud, collusion, and conspiracy convictions.

Most states won't allow agents to pay anything to an unlicensed agent.

Basically they are just acting in the capacity of a dishonest unlicensed Real Estate agent.  

If the owner is ok with working with an unlicensed middleman for selling their non performing commercial asset you then have to evaluate the value of the property if your going to make any kind of offer.

You could have some liability there if they are un-licensed and you hire them more like an employee who you are supervising.If they bring the whole package to your interview and you feel good about them, you should have no worries about asking hard questions or scarring them off.If you have to worry about "not scaring" a contractor, you are either very scary (which I'm sure you are not) or the contractor might have a little problem.Good Luck!

However I think if you use that formula and deduct those few items from your ARV  you will be in the ball park.Although  Make sure you don't run afoul of the licensing laws .. you may want to look at The BRE website right on the front page has a item about unlicensed activities.. so make sure you know what your doing here..