@Adrienne Bryson  when you say you tell sellers you USUALLY pass them on your inferring that you close most of the time.. when in fact you probably never buy any property.this is the crux of the matter. selling RE without a license.. and the issue is the states just don't have the man power to crack down on this.. some are though, Ohio,  FLA,, CA  at the rate of wholesalers messing up transactions I suspect within 3 to 5 years this activity will be curbed quite a bit and you folks will HAVE to Have your funding to make these deals. you WILL have to buy them then resell them.like I have said in this post 2 to 3% can make a living the rest just blow whatever money they have on yellow letters.. and never do a thing.... its a tough business.Its also very very regionalized.. if your in an area of low value RE in an area which in the US are usually filled with owners that are regular joes and not really very astute to the RE game. its prime grounds for fast talking wholesalers.I actually buy a lot of property in a lot of markets.. well over 30 to 40 a month.. some of my vendors get them from wholesalers occasionally .. but most do not.

I hear some states crack down on wholesalers pretty hard.For example, even if you're not wholesaling and you're buying the property for yourself, you need to make sure the seller is aware you are a licensed real estate agent, and you must tell them he/she is selling their property to you at below market value, show them comps of the actual value, and have them initial the comps so they understand what they are getting into.

Pursuing these short sighted methods is good for those who think wholesalers need to have regulatory crackdowns though.

There is a crackdown happening with regards to RVMs and SMS marketing.

Obviously, you need to crack down on the tenant removing the safety devices (what is their reasoning for doing so in the first place?).

So this is kind of recycled old technique, and if it becomes real popular and there are enough defaults, Fannie/Freddie, VA, FHA will crack down. 

The states are really starting to crack down on unlicensed activity..

I've read a few articles about how the city is trying to crack down on short term rentals such as AirBnB etc. but I'd like to know the experiences from others who are actually in the situation. 

Be careful with starting to crack down on late payments.

In my neighborhood, our HOA is seriously about to crack down on the parking because absentee landlords and allowing students to share rooms.