Her recourse if I miss/stop payments is foreclosure, I forfeit my down payment.  

If in fact this is the way it should work I will let it go.The contract does state the deposit will be forfeited if there is any "failure" of the tenant.

@JJ BlissThe security deposits do not belong to the PM or to you, but are held in-trust and belong to the tenant until such time as they forfeit them to pay for debts or damages.Not only must the PM send the security deposits to you or your new agent, but depending on the legislation in Wisconsin, s/he might also have to include the accumulated interest on each deposit.Sounds like the PM is not holding the deposits in trust and perhaps has spent the monies.  

Pay a fee of 2 months rent and forfeit their security deposit or THEY have to find an acceptable tenant (meet my standards) to take over the lease.  

If the landlord fails to give the required notice within the 30-day period, he or she forfeits the right to impose a claim upon the security deposit.

Report back when you get a $1,000,000 liability case that goes against you and all you forfeit is the LLC assets.

@Charlie MacPherson I'm sure somebody will find some state where you have to have $1 change hands but where I'm from contracts are just mutual promises and no EMD is required.The EMD is a remedy... forfeit upon default.

I use this incentive: damage the property, forfeit part or all of the deposit.

Then in case he doesn't know his contracts work, write in the comments section "if not closed by this date, then earnest money is forfeited."

i never understood people trying to wholesale REO's the REO sellers for the most part will not allow "and or assigns" on the contract, so unless you do a simultaneous close, and use someones money for a a day, i dont see it working out well, besides, your gona forfeit the ernest money if you dont get a buyer, just find the money and buy it, and resell it legitimately