For example, failing to file a Business of Information (BOI) report correctly can result in penalties of $500 per day or even up to one year in jail if the filing is late.2.LegalZoom or Similar Services:LegalZoom can help create an LLC for about $600.

But, he has no ability to take any corrective action he feels is necessary or beneficial.  

If I understand correctly you'd be purchasing the land, and improving it and splitting it into the appropriate "buildable lots". 

That part is not as straight-forward.Such operating agreements are frankly costly when done correctly.

Also---you need to make sure whoever did the rehab did it correctly (no point in paying a premium price is the work isn't done correctly)...lastly if you pay for a turnkey property...how do you know the tenant is paying a market rent and is a good tenant (credit score wise, payment history wise) etc?

Asking in the correct forum will get a better response.Need a spreadsheet or form?

Once a default has occurred - be it missed monthly payment, note maturity, etc, the note holder or their representative send a letter to the debtor notifying them of the default and providing the statutory timeline for corrective action.

My experience has been that this is absolutely correct.  

I hope I understood your scenario correctly.

You are correct about that, but that's usually a computation and decision that an investor makes after a couple single-family homes or small multis.