It's the government!

@Christopher Gilbert -I am not 100% sure, but if the property manager is licensed (and they have to be in Texas, but not all comply) there is probably a rule or law governed by the Texas Real Estate Commission.  

Yes, but from what I see, most wholesalers couldn't pass a test, even if they do get all the questions to study, multiple guess, instead of memorizing the answer they'd  memorize the letter to the right answer that's less trouble.That's the attitude of most in RE, it is a self regulated industry, if you don't then Uncle will. :)

What you describe is essentially creating a security, which is governed by federal laws and require a good bit of legal and accounting work to set up.  

For an LLC to exist, most states require a certificate of formation to be filed with the Secretary of State (or some equivalent government entity).  

You should have an accountant and lawyer familiar with the regulations advising you. 

Don't worry, yes, I had them sign a lease, a mold addendum, rules & regulations, and an addendum for drug-free housing.Complication #2- They moved out with prior notice (which is required, 30 days in advance of the 1st of the month), leaving behind TONS of possessions, and moved into a shelter.Complication #3- I was never given notice.

But how will the regulation of the regulators actually shake out?

To avoid a nasty surprise, if you plan on reconfiguring lots, check with the local zoning regulations first.  

DEBT Is good as long as I control it FOR MY ADVANTAGE and it doesn't control me.Some people can't use debt in a productive way so it's best they do not have it at all.It's the similar argument for people who claim less dependents on the taxes so they have more taken out each year for a bigger check for them later. ( a forced savings plan for those with little impulse control).Conversely there are those who say pay as little tax as possible and do not give the government an interest free loan and make more money investing it before the taxes come due.It's like paying off your house.