As far as I can tell you may only possess one license at a time in the state.

It's essentially like putting the property on layaway only you get to at least take possession while you pay the contract.

They could foreclose and take possession of the property.

Forming an LLC will protect you and your personal possessions.

Their agent (if on mls) usually comes back saying it can't be done - I then say: well if you can't get me vacant possession then I'll only pay x amount. 

You need to know how to buy.Don't get into a bidding war, don't go above your price, WALK --- there will be another auction tomorrow.Try to get immediate possession If the property is vacant - time to fix up and flip or rentStart settlement immediately, call your title company.Read the auction contract before biddingUnderstand all your chargesAdd in to your cost; commission, settlement cost (both sides), holding interest cost, title search and title insurance, insurance, repairs, taxes to be paid in advance.No sale?

But I wouldn't take possession with a 5th tenant in there 

The agent being there is actually good for you, because legally you are not the sellers agent and there is a tenant living there with all their worldly possessions. 

But how does this compare to "Note Brokering" - or clearly the practice of connecting a note seller to a note buyer and collecting a commission.With that said, does note brokering pose a legal issue as well if you're not in possession of a RE license?

There is no guarantee that you will even take possession of the property.