If I see them dishonest in anyway, even in the small things, they wouldn't be a good partner for me.  

Then a dishonest buyer came my way by the name of Noreen Miller.

This allows a better paper trail and some segregation from the actions of other investors but does nothing to protect you from a QI - honest and sloppy or dishonest and larcenous.A segregated account protects you from another clients divorce, bankruptcy or EPA superfund claim. 

It is a huge market in CA, tons of great lenders out here.

Speaking as a house flipper, not all house flippers are the same and you don't have to be like the dishonest ones that @Jim K. is speaking of.

It's intellectually dishonest to pretend that everyone can be a millionaire; as George Carlin used to say, "If everyone is special, then no one is special because the entire word loses its meaning".

I can totally see people acting dishonestly as an issue, but if they are up front with their intentions, would that change your opinion of that particular wholesale practitioner?  

(Edit: these are not contrived... they are actual numbers for a property in my area...)I agree that in your scenerio that would be 100% unethical, dishonest and taking advantage of someone but that's just speaking hypothetically.

You will never make it in business being dishonest and misleading people. 

If you don't intend to BUY it, signing a contract stating you do is dishonest at best.