The issue I have had, (I have done a few loans there) is that I could never seem to find enough people that I was comfortable with ethics-wise to make a concerted effort to work the area. 

It's a mind shift - as a wholesaler, you are trying to get as far from retail as morally and ethically possible, lol.

I'm trying to be ethical and honest but at the same time don't want to throw any red flags up with the seller in explaining my reasoning.

Hi Starr,Tim Horton's requires you to be an owner operator and hands on.For mutual success and satisfaction, we must ensure that every Franchisee possesses the necessary skills, commitment level, dedication, work ethic, character and strong people skills.

That being said, it's up to you to decide whether to work with the little guys and maybe even form a working relationship with them while dealing with the quality(or lack thereof) in their work and business ethics; or, find an established construction company that would maybe give you deals if you give them volume work or put up the money that they charge. 

This is of course assuming they meet the criteria of trust worthy, good work ethic, etc...

This is a clear violation of the ethics code inspectors are required to abide by.

We are eager, excited, committed, and have great work ethic and money management.

Also is there a way I can look up to see how ethical and reliable people are before doing business with them?

This should not be a legal or ethical decision.