It would be unwise (and fraudulent) to be dishonest. 

That said: it would be intellectually dishonest if most investors didn't admit that they have their own set of prejudices (myself included) when it comes to buying a property, and though it may not be said out loud one of the questions that will often go through someone's mind is "will this place be difficult to rent because of the makeup of the neighborhood", and demographics is part of that neighborhood. 

They dishonestly take money from the very young people who don't have the money to do the type investing they are selling and they take money from elderly people who hardly have enough many to pay for their courses and have no more money to invest. 

and since I'm your broker I want this property to do well so I have to manage it well so that you will buy more property in the future.To Dennis's point of the conflict of interest, If you don't have trust in your PM you need to find a new PM that you can trust, PM is a conflict of interest in general as I am making money off of the problems you have so if I was a dishonest PM it would be better for me to cause more problems and than fix them. 

There is good and bad, honest and dishonest in every field. 

I agree that being dishonest at the outset is not a good start and likely you will have problems later on.

Still feels dishonest, has anyone dealt with something similar before? 

If you do not tell the seller you have ZERO intention of buying their house and that you are going to sell the contract afterwards, you ARE a liar, dishonest and ... doing it wrong! 

This eliminates the need for double closing, drama, earnest deposit confusions and minimizes your risk.If you need to be dishonest (hiding stuff) from sellers, you are structuring your business to struggle in the long run.But to answer your question... in your JV contract you need to mention that by signing the contract they release the money to you.

Even worse if you get a dishonest or crappy contractor who either steals your money or cause problems of his own making but you have to cover that cost.