These people don't usually possess the financial intelligence to save enough money to pay rent on a monthly basis.  

He wanted $50k down (most all commercial is 20% down at least) so he took a 3rd mortgage on a house I had 3 states away in CO.Anyway, if you use intelligent leverage (borrow at good rates and terms) you will see there is cash-flow.  

I threw this out to a few intelligent people at a REIA meeting last night.

What other things could one check to raise the information intelligence which in turn reduces the risk?

Most intelligent wholesalers have an assignment contract which requires a deposit from the buyer.

Seeking mentorship is an intelligent move.  

Really the best solution would be to find an agent like @Wayne Brooks who is one of the most knowledgeable an intelligent posters on this website. 

Any thoughts on how to phrase them without getting into property specific language but still being intelligible to Joe Six Pack?

I am looking for some intelligent ammo here and having difficulty getting the answer since I may not be asking the question correctly. 

I woul need some more info before I can give you a intelligent answer.