Should I take extra steps to verify their identity and legitimacy?

Typically this means they will take longer to close, may not have all the information for the companies they work with, and most hard money brokers get their money by taking an existing product and adding extra points to pay their fee.What is your investor success rate?

then theirs charges 1000s in extra fees. 

Let’s say with your plan they make an extra $100 or $200 in fees and you lose $1000 or $2,000 in bookings.

But I would charge the extra 3% to cover my costs.

No state income tax.3. property tax's some of the lowest in the country.4. quality of construction most homes are built with stucco and tile roofs and desert landscape compared to much of the mid west rust belt were its very common to be looking at houses that are 50 to 100 plus years old. and yards grow fast  snow sleet ice all take more wear and tear on your units.we do a lot in most of the mid west rust belt states. the prime motivation is price point and rent to price ratio for those aspects they are the best.

After 20+ years, I hear from so many who are more motivated by fear than optimism and make decisions based on not losing rather than a high probability of winning. 

Currently,I don't have any experience in RE investing but highly motivated to start it asap.

.: I think you made a mistake.Yes, you get extra money.

Delta has not charged me extra for the new block.