I've done some research on the property, and by putting a few puzzle pieces together, I've been able to gauge that the property owners have inherited the property, and by the looks of their judicial involvement - have largely abandoned the property completely.

Although as you have stated it is hardly passive- I am changing prices daily- contacting renters and perspective renters hourly and constantly putting a puzzle together.

I have several local portfolio lenders that do a great job on that end, so now I need to either find my notes or make the calls again on the hard money and I have then got all pieces of that puzzle nailed down!!!

Ask them their criteria, rates, Arv-based or LTV based (Arv is much less common but probably better for you as you'll need less cash up front), min/max dollar amounts, geography they like to lend in, etc    Most good hmls have a huge network of contractors, investors, appraisers, etc   If you develop rapport, and promise to bring them your business they will sometimes open up their network to help you if there is a missing piece of the puzzle.  

Some never getting to 2cd phase of bidding which left me puzzled on who would live in such a disaster area?   

(Home Inspection, survey, origination fee, 1 year of taxes escrow, 1 year of insurance escrow, other lender fees etc.)All too often I see investors on BP running through the numbers or purchasing properties with conventional financing but forgetting an important piece of the puzzle.

We were going to work something out with him if possible, but this new information has all of us puzzled?

I also owned and operated a residential/commercial landscaping business for 25 years, so I am very familiar with what it takes to make it in business.I just have a few more pieces of the puzzle to put together and I will be ready to start.

That strategy puzzles me...why would your investors want to relinquish their ownership just as the deal turns from good to great? 

On the other hand, we have zero evidence that the Commission has approved this practice.However, based on my understanding of Contract Law and fundamental concepts of Common Law, were this to be challenged *as applied* to how a lot of wholesalers operate, I would wager that this would be smacked down by either the State's Supreme Court or the Federal Appeals Courts.I've seen vague citations to unspecified principles of common law before in this debate, and frankly it puzzles me.