It is a shame that some tenants act this way.Your comment on due diligence is well understood.

We've done 100% CLTC (combined loan to cost) like this with our own funds before when the deal was completely unbankable but we had a relationship with the client and understood that we could broker the perm debt easily once the property was ready for it. 

Understood.

He understood that I wasn't from the immediate area and said he would contact the sellers' agents who he would likely have worked with before and ask them if there were any major "issues" I should know before I made the trip up again to look at the properties (potential properties).  

I never understood/grasps this when I was younger (read late 20's) and wish I did.  

From what I understood from them, they buy "wholesale" from insurers (let's say Loyds fo London) and then sell "retail" to investors....

Understood and agreed.

@James Wise ... understood.

Understood, but what is your end goal.

I wanted a full-service company that could handle everything from acquisition to management.I called a number of the Turnkey Companies and all of their offerings were at or above retail pricing and none of them provided sufficient cashflow after you adjusted their proformas to include appropriate cost estimates.So I started to look for alternative options - specifically, I wanted a company that understood that as an investor I would 1) place a lot of offers on prospective properties while having a much smaller close rate than that of a traditional home buyer, and 2) after a property was under contract could provide thorough quotes and picture profiles for the prospective property at no cost to me during the inspection period (I scored it higher if the rehab team with internally or closely held since in those cases the quotes are usually more accurate).