So in essence by waiting and hoping they accept your bid you are taking a risk that this great deal becomes someone else's good deal.

On the other hand the owners of the LLC are taking a larger risk but have the potential for more profit.

@Roger Evans a 12 % return on your money is a reasonable amount if you understand the risk.

I wouldn't assume that this experienced investor could also just get a regular commercial loan at typical rates 10% down and 5% interest rate. assuming again they have proven to this lender in the past that they are extremely low risk?

And the answer is always "it depends on your goals, risk tolerance, and what type of investment you want to do."

By not asking for POF they run the risk of spinning their wheels for nothing. 

Cats are a serious Health risk Wash your hands when around them. 

I don't have time nor should the management company have time to carry someone else's monkey. 

Many real estate investors swear by them, other people say they should never be used.The reality is that wraps are a little complicated if you have never done one and hold some small risk of a bank calling the note but CAN be a useful tool when used correctly with two (or three) willing partiesRegarding the terms of most residential mortgage terms, specifically the "due-on-sales clause", they generally say that the lender "has the right to call the note" but not the obligation.   

Once they are debt free, I will then feel more secure and more risk tolerant.