Even Paul Krugman, champion of progressive policy, agrees with that.That's a nice reading list you've got. 

Have a dollar amount that you are willing to defend against if litigation arises.....example 5 properties in 1 LLC worth $1M.  

Our attorney (who wrote the local brief on the LL/Tenant law) stated that this is a gray area of the law, and that we could defend this practice as the law states Landlord cannot collect more than $20 -- it doesn't address 3rd parties.

It can provide a defense for the insured, which means it with provide a attorney to defend you. 

I, for one, need to be able to defend my position if asked the question about commission rates. 

The first judgement lienholder doesn't appear as a defendant in the FC. 

They will defend you and provide a lawyer.

But you may want to research this seller's background, and whether they've been involved in any legal action in the past (either as a plaintiff or as a defendant). 

You have to prove that there was a valid contract (many wholesaler's contracts will not bear scrutiny), that the defendent was aware of the contract, that he acted improperly, and that you were damaged.You also have to do this all in a way that doesn't bring down the authorities on your head for brokering without a license.And without specific performance, all you get is your actual damages.  

I negotiate (other than real estate) for a living, there are times it is better to throw out the first number, especially if you think a seller has a crazy high number in their head.If you have reason to believe they think its worth (pick a number) $100k, and a fair deal would be more like $60k, throw out a low number to start, this makes the negotiations start at the lower number.Now I will say, don't throw out the top dollar you will give for the property, and I agree in most cases let them throw it out, but I'd rather defend a $50k offer that is somewhat realistic, than start at $100k and work your way down,,and don't just 'throw out a number', given the reasons for your offer before you give the number.If from your conversations you know the seller is going to use the house down the street that sold at $110k, then go ahead and deal with that now,,explain that there are houses in the market that have sold for very high prices, those houses (explain the difference),,,take away what he is going to try to use against you in negotiations before he can.