He has been caught once, but the bank didnt seem to really care, they just basically told him to stop until after the closing.

I offered a low price point, he countered, I came up 5k from my low price point and then his realtor stopped calling me back.

There will be kinks, there will be some disagreements, but I feel like even if I stop I've made 2 lifelong friends.

One thing I would consider is finding another investor through your local REI meetings and doing a JV (joint venture) deal with them.

Pre-foreclosure can be stopped by paying the amounts due or getting very close, you can also buy the note in some situations, but that isn't a short sale. :)  

And hey, it is a free resource that you can listen to while you commute or drive around.I wish you all the best with your new venture.

Also stop listening to rumours Real estate companies make money when you are successful and you usually work on teams to build business This is another valuable  tool for you because you would learn the entire process of contracts,laws etc and network with other like minded people ,plus you can even make a few bucks on the side

I would venture to say that it is only a small percentage.People make a ton of money doing all sorts of businesses. 

The bank cannot stop you from putting the property in an LLC.

To locate portfolio lenders in my area, I am networking with other RE investors and making a lot of phone calls.I wish you all the best with your new venture.