Or do they just want to sign an agreement to move out in 30 days and you'll give them their full deposit in cash on move-out day, if they leave the place clean?

@Ben Dao,The way around that is to arrange to have your paycheck direct deposited into your line of credit.

Parents had all of the money available as they had a good enough income to pay deposit, 1st month, and move in ASAP. 

Make sure every dime is deposited into the trust account.Private lending, like syndication investing, doesn’t involve many transactions.

Our offers include clauses allowing us to do our due diligence before closing and protect Earnest Money Deposit (EMD).

For example, I often see Buyers purchase property thinking there is a $1,000 deposit but then the tenant claims it was $2,000 because they paid the last month's rent.

Quote from @Stetson Oates: The vast majority of disputes are over security deposits and the most a landlord could lose is 3x the deposit amount.Slip-and-fall or other major lawsuits almost never happen.

But he has clear advantage of getting much larger deposit (landlord in most jurisdictions is limited to collecting 1.5 or 2 months' rent payment, which he must place in an escrow vs. $8000-$10000 Scott can collect and use for any purpose the next day). 

So someone who lends based on deposits and relationships rather than a broker who would sell your loan.

Hopefully, they don't go bankrupt lol - In order to get started with the process, I have to pay $1000 deposit. Fully