They certainly protect the sponsor to an extent and make sure to put limited investors on notice that projections don't always pan out however being a bad actor ISN'T covered.

The good news is it appears your only responsible for 2x damages if you withheld the deposit maliciously which it appears you didn’t. 

I would not confront them or even act outwardly like you know anything (your property is too vulnerable as are you).These online reporting systems allow you to give great detail, which you can collect just from observations (be it license plates, numbers, times, etc).While I have not totally solved anything (yes, they have younger trainees in waiting), I know one action took place ( one of two bad actors was arrested, slowing traffic by 1/2) and also it got them on the radar screen of authorities.

I absolutely do understand the thought behind your post, and would like to think that it was not directed in a malicious or accusatory manner, especially now knowing how it played out after the fact.  

In the absence of any lease agreement, they would still require 60-90 day notice (research protecting tenants at foreclosure act or something similar).I think hard money would be a stretch to because how could you present any information on the condition of the property inside or perform due diligence.

Reminds me of a movie where the actor appeared to be talking about burning down junkers rather than rehab work.

@Wayne Brooks  this is a critical issue in many states and its state specific.. like MS we use QC all the time no problem. in other states its a problem... for instance in MO I had a client that lent money.. this was a flake that was trolling AUSSIE's bad actor from KC... he then quit Claimed house to lender.. but this would not hold up and lender could not resell.. lender had to do full blown foreclosure because the guy went dark.. were as a DIL would have done the trickOP,  I think you can have your grandmother sign the warrenty deed .. it does not extinguish by signing a QC the warrenty deed is then recorded and the title company has what they want..if she is not capable.. then I think you need to petition the court for help.

@Rich Ng That's what I would really like to do, but after listening to podcast number 109 I'm still a little nervous about that because the attorney they were interviewing said that insurance isn't really the same as liability protection and if a lawyer sees that you have assets and claims you had malicious intent then the insurance won't cover it...

Originally posted by @Chris Eaker:Also, this ad is in violation of Craigslist's terms, which prohibit overposting ads.It is likely way more than just a violation of Craigslist terms, it is probably a violation of the law ... if you local folks truly think he is a bad actor, then please do your market a favor and turn him in.

The fraud can be based on anything you say or do which lead someone to act or fail to act thereby causing them damages.