@Patrick Philip,Well, banks are "flush with cash" these days, but no, they do not have unlimited funds.Also, when banks lend, they impose certain restrictions on the loans, the borrower, the collateral, the terms of the loan, etc. so the note can be sold in the secondary market or be insured by government-sponsored agencies like Fannie Mae, Freddie Mac, etc.Private lenders ("OPM") typically don't write loans to sell them, and typically are interested in the deal rather than the borrower's details.Using OPM down usually means putting some kind of partnership, joint venture, etc. together so the source of the down payment is less of an issue or a non-issue to  the lender(s).Dunno if that helps...

The reason is that is by state law you are considered an intermediary and not a principal, you are required to comply with the rules governing the behavior of licensed real estate professionals when running your wholesale operation.

I am looking for information on employment verification and what the government has to say about it vs. what the bank has to say about it.

(c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government. 

Its government stuff so sometimes they can be a pain on things, but I've never lost a deal once it was inked.They are moving way faster over there than they were last year, the ones priced right are getting gobbled up, you really don't have a week to ponder things if its a real deal. 

Timing is a waste of time.Any data you do find is monkey math manipulated out the wahoo to tell a story that the government/Federal Reserve wants to convey.

Are there rules of thumbs governing this decision?

Our government is after all you profits.

They're probably not reporting your money to the government, which could create tax problems for you down the line, and by not having a contract they are less bound to the job and more free to walk off when they want.

You are putting a deposit down for the appropriate governing body to foreclose on the property for delinquent property taxes.