Companies that INVEST have other business functions that are the primary source of income, when the primary incomer becomes through note operations you're a BROKERAGE!

I know in the states i operated yes, if you use a realtor you have to pay the fee not the tenants.

That'd make it easier as far as deciding which state to open the LLC in.If you open the LLC for say Nevada, but do business (own properties) in California, you'll have to pay foreign entity fees/tax...and that's pointless.Next, you need a very good operating agreement for your LLC.

Conventional lenders want to see operating data that supports the loan. 

We are local operators and we've gone through a few property management companies.  

The Agent said he was getting ~20-30 homes under contract a month, and would either wholesale or fix/flip.My question is, how would you get set up with such an operation?

That's what I mean by "jumping the education curve" - if buying and operating a small multi family gets you a profit of X, but rehabbing and zoning a mixed use gets you a profit of 2x, I don't think it's likely people will reach the 2x if they start by "passively" investing remotely.  

If you got less money, then you are giving it to a turn-key operator some place in the mid-west to buy you some pigs. 

What operating expenses are you subtracting from your income to get NOI aand what is your NOI?

I think it's better to just keep properties together under one LLC if you are a small operation - even though there is always risk the amount you end up spending and time spent on overhead of keeping separate books, checking accounts, etc adds up fast.