I've joined the SJREI and just engaged a broker to assist me with finding REO properties. 

You collect rent and then pay rent.If you engage in seller financing, carrying the note, then that would fall under Dodd-Frank.Leases with an option fail because the consumer is getting into the lease because they either don't have the credit to get a mortgage or don't have a down payment saved up.

If you have a tenant who has a decent job history or other responsibilities they typically do not engage in criminal damaging behavior as they understand that there are negative consequences for their actions.

I'm thinking this should be state-specific, but realistically you're not supposed to engage in any transactions that are not your own without a license.

In terms of partners, my friends seem to be too busy buying engagement rings or renting swanky downtown lofts right now, and it's proven difficult to find someone willing or able to start this with me.  

I would take issue- but I sure as hell wouldn't be in a position to have an appraiser inform me of this- I would have known.If I was the seller I would think the buyer either got cold feet or was trying to strong arm me since we were "engaged" in the deal.

We also had a plank substructure on both these buildings and I can see how that would contribute.

What potential penalties would exist for a licensed property manager / firm who engaged in the following?

You might want to think twice about hiring lawyers to file a lawsuit, engage in discovery and motion practice, and spend thousands more in dollars only to find out, at the end, that the valuation number was accurate and perhaps even low.  

@Tim Emerson,You'll want to learn how to attract and engage private lenders for acquisitions, and use conventional lenders for refinances to pay them off.Just a thought ...