If your primary focus is to flip housing then a hard/private money lender is your best bet. 

My partner and I started off by forming an LLC but quickly learned that we should probably have a passive and an active income LLC. 

It's illegal to accept compensation for this activity without having a license.You can have a bird dog sign an option for the property and sell the option to the investor.Or, you can pay a bird dog per lead like $5-$10 per lead or 100-200 leads for $500.You can't pay a bird dog a commission or have the pay depend on if the deal closes.

They are listed based on comps in the area (solds, pending, actives).

But that doesn't mean it's always a good idea for everyone.Are you looking to become an active investor and build a company around your investments?

Hey everyone, I will be starting up my wholesaling business in the coming months and I was looking to hear about the hottest markets, specifically in the south suburbs of Chicago.I want to out find which areas investors are actively looking/buying in so I can cater to those markets. 

Matt Berklacy Your best bet is to get your salesperson license and hang your hat at a brokerage that allows investorsThen you can get access, put I.

As for why folks are investing out of state most do so for 1 of 2 reasons.They are living in a market they are priced out of and look to Midwestern cities for lower entry prices.They do not have the time, ability &/or desire to be an active operator in the business of rental real estate.

Hey @Teddy Shonts, I currently live in Portsmouth, grew up near Derry, and actively invest in the Manchester area.

If you have 14 rentals in 14 separate LLCs, each property with its income and expenses is listed on Schedule E as if the LLCs did not exist.The Fix-and-Flip single-member, disregarded entity LLC is an active income business reported on Schedule C and your flip income is also subject to self-employment income taxes.