Would they have a case in court?

Law might be different for each case in your state.  

Hopefully not the case in this situation but that is where I would start

Im down to get into it but I don't know what will be the case in 2-3 years. 

Any way... please post your license number for all since you said you have one... that right there moves you up in my book.. most of the wholesalers we do buy from are licensed especially the Florida one's were its mandatory to have a license if you going to be selling RE.. again many break the law but that's the case in a lot of states.

The US began under building housing of all types around 2000 creating the housing supply shortage. sorry dont buy that one.. there was a HUGE glut of unsold new construction that took years to clear off the books from the GFCyou have access to the economic research. not as if you need a special account to search academic research as was the case in the 2000s in addition to the BLS, the Fed, etc. the US began under building around 2000 compared to population growth. the glut was the result of the decrease in demand from the great recession collapse. builders were on a tear based on current demand and cheap capital not basing building on long term demand for housing. how many builders failed over extended?

There was a court case in 2014 to exclude purely passive investors in LLCs like a private placement fund, but active management is still considered subject to the $800 franchise tax fee.

That was the case in my county where collusion and other practices led the to the NC AG office stepping in.

Having them spend about $5k is going to make about a $50k difference on their particular property.Also how do you deal with the issue of having a really expensive property right next to a falling down vacant property which is often the case in some of these DC neighborhoods.

There is a rather famous case in Boulder, CO where a lawyer/judge couple used a portion of a neighbor's property for years.