As a disclaimer, I want to mention that every investment has risk and there is no guarantee of any return on this investment or any other investment.

This could be a way to guarantee a steady stream of income while still working on higher-margin deals separately.

They will outlast most stick-built dwellings with a fraction of the maintenance and have a lifetime guarantee to back them up.

Say what you want about that but I'd be looking out for myself and if the person doing the reference checks isn't smart enough to go back further... that's on them. in markets for rental areas that have high proportion of tenants  like the mid west were something like 50 to 60% of all folks rent.. your telling the truth flat guarantee most landlords with a bummer tenant is going to say anything they can to get them to move on.in nicer areas of A class 700 fico tenants this is not really as big of an issue

Something to consider though, just because someone is offering a better rate does not guarantee the loan will close or that it wont be filled with headaches.

No coach/mentor can guarantee you'll be successful in real estate despite their sales pitches.

I have flipped four houses to date and typically look for properties that guarantee a healthy margin.

@Hunter GibsonWhat you could possibly do is sue saying the wholesaler was selling a property they did not own but that will cost $ and is not guaranteed - how much was your EMD ?

It’s pretty hard to earn a guaranteed 8-9% return. 

I make sure (1) the borrower has a 10-20% (or more) down payment of his OWN capital invested (2) I understand time value of money and use a realistic and appropriate interest rate to determine the actual value of the note I’m holding and (3) obtain a personal guarantee unless the entity purchasing the property has financial strength in its own right (4) the lien I hold is in 1st position.