Neither is clear cut nor easily enforced.I realize that a lot of conventional advise is that wholesalers should just bite the bullet and get licensed.  

There are many 5-year periods where financing was very challenging and you wouldn't want to be staring down a bullet during one of these periods. 

If you do decide to go the out of state route I've laid out a few bullet points that I like to give out to new out of state investors to help reduce their risk.Don't buy in the roughest neighborhood in the urban core.

@Leandro ZhaoLLCs do not exist in Canada {It seems to me we have already had this exchange on a prior thread}.Your decision of "if" and "when" to hold you real estate in a corporation will depend on a few factors:your present personal income and tax situation;your other investments and wealth;the source of the capital to fund your acquisitions;whether you plan to have partners or not;the size and scale of your initial acquisitionsetc...My recommendation is to sit down and draw-up a list (bullet form is sufficient) of your near, mid and long-term goals for real estate investing.

I have dabbled in some crowd funding RE through Fundrise to get more passive RE exposure while I was too busy with personal life to buy my own properties.Day job: Engineer and Project Manager in energy sector.REI interests: To start, SFR and smaller MFR, eventually commercial and who knows?!?

In what ways will that level of income be a drag on your spirit, time, and energy? 

Under the tax code, an individual may deduct up to $25,000 of real estate loss per year as long as their adjusted gross income is $100,000 or lessif you choose to spend more time and energy than it's worth then you could go to small claims court and get a judgement.http://www.ag.state.il.us/cons...My 2 cents.

This can result in increasing fogging, energy costs, and noise.

For me personally, I just had to get over the fear of losing money by just biting the bullet and diving into my first deal.

I’d definitely prefer to be nearer to where I work but I may have to bite the bullet and go farther out.