@Michael A Pierson I think you might be confusing Dodd Frank restrictions regarding the number of Seller Finance deals an individual can do (someone without a mortgage broker license) with property management.

When you walk into a phone call, meeting etc. with this in mind it sorta makes the large issue silly, I often start meetings this way...to pull everyone out of the legal/expert arena and into....oh we are actually all trying to survive and syndicate a solution together.  

This is definitely a legal question for your lawyer. 

@Sandeep Gangadhar Property Management is probably the most important member of your team, since they represent you in front of the customers, in front of the contractor, in front of legal, they also collect the rents (financials)..etc.

I can appreciate that how the idea of selling and keeping that commission sounds good, but sometimes, it's best to pay upfront to prevent any legal quagmires down the road.  

I'm not an attorney so please do not take my opinion as legal advice.

It only makes them legally liable for the rent, which, they are not likely to pay anyway.

I think I have an idea how to separate these fees:Loan cost - Amortized over life of loan- Application fee - Appraisal fee- Loan Origination Fee (delivery fee)- Credit Report Fee- Record Mortgage fee- Mortgage tax - HOA questionnaire- title insurance (mortgage)- bank attorney feeTax basis Abstract and recording feesrecord deed Legal fees, title search, document preparationlegal fee title exam land surveyflood certification feeInspection feetitle insurance title insurance (owner)Is there anything I listed under the wrong categories? 

Skin" in the game is putting up money.In Indiana, net listings are legal as long as the contract shows the maximum commission.The problem will always come down to if the original list price was accurate.If your broker took in 10%-20% like a wholesaler, would you agree to that up front?

That seems particularly restrictive and could change my mind about evaluating properties there.