Hi everyone, i hope everyone is doing great. my name is cris and i live in san diego california now. i'm a out of state investor who own 2 properties in rockford il.

Fees should be clearly stated in writing, easy to understand, and justifiable.

Firstly, start with your states laws regarding Broker/Agent communication.

Remember, a good agreement makes a good deal better, but a bad agreement makes a good deal bad.Also, as @Dan Heuschele alluded to, if either of you performs any activities whatsoever while residents of California, the state of California's position is that you will have to register your LLC with the California Secretary of State (even if formed in Texas or some other jurisdiction), file the annual Form 568, and pay the annual $800 tax.Also, by forming an LLC in Texas, you may be subject to the Texas Franchise Tax.So really the only person who can answer the question of whether you need an LLC or some other entity/arrangement is a qualified attorney who thoroughly understands each partner's situation with respect to themselves and each other.If you need a reference to a good one, I have one. 

You'd be stuck in a rent control state with a fraction of market rent. 

Chad I find these NE states to be quite complex compared to the west coast states that are really cut and dry when it comes to these issues..

Also, we are open to just general advice about out of state investing, or books that are a great help. 

As well as if it is smart to even have this as a back up plan In most places tax liens go right to the front of the line so there's no real risk to the state/local government and thus no reason to sell them for pennies on the dollar, as they usually can collect everything just by foreclosing.

Its an attorney state so the attorney has to draft the contract. 

Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties" by David Greene: While focused on long-distance investing, this book offers valuable insights into property management, tenant screening, and other aspects of real estate investing that are relevant to house hacking."