It makes no sense and shows how horrendous the "training" is for wholesalers.My “favorite” is the new and inexperienced people who think that they can sit at home, scan a local MLS, somehow identify underpriced properties that every experienced investor and all home buyers and real estate brokers/agents missed, tie up the property with “borrowed” fully refundable  earnest money, no proof of funds, no approval of financing, post their “find” on a real estate website, appropriate someone else’s buyers list, and profit a minimum of $20k per.  

I am living proof.

Request financial records, paystubs, and any proof that they can pay on time6.

And, I have seen lenders ask for this proof when reviewing a conveyance to an LLC.Lastly, there is little risk since the LLC can easily deed the property back to borrower if lender had an issue.

Just requiring proof of identity will stop many of these scammers in their tracks. 

If they are current then you most likely would not need to file a proof of claim.

When I rehabbed the basement I tore out the existing drywall ceiling and added sound-proofing insulation followed by a 5/8" fire-rated drywall thinking that would be enough, but apparently the tenants can hear us walking, the dogs claws (we have hardwoods) as well as the TV.

For risker applicants, require a guarantor (who is not "judgment proof") to agree to pay for damages and unpaid rent.Unfortunately, you cannot eliminate all risks of loss, so there are times that a tenant may end up causing damage beyond the security or coverage you have to pay for damage, but the above items will help.

They should stipulate from an Insurance perspective that the Contractor provide you with proof of Insurance that:    1. names you as an additional insured    2. provides 30 day notice of cancellation    3.

Michael,If the builder and/or HVAC contractors gave you proof of Insurance.