Another struggle i have with STR is replacing small items continually which ties back to pricing.

Often, owners beat up PMCs for a low price, but fail to understand the PMC will often cut corners to make sure they are still profitable. 

I have some family ties to the area. 

Hard money lenders have a good amount of flex when it comes to FICO score and typically the main issue that borrowers with low FICO's have is that their max loan size gets cut which doesn't seem to be an issue here.

The argument that was posed was that they're just trying to say they want to buy the contract, but in reality, they're just tying up the contract so no one else buys, and so they can swoop on the property after the 30-days is up.

Where any broker will take you since you give them a cut from your commission or pay a fee per transaction.

Its not usually cut and dry so more of the story would help.

If they will "cut corners" by not getting licensed, how well will the quality of work be?

By wasting it on the DP you tie that money up for years.

Cut your losses the first time they miss a payment and start the eviction process.