I have heard of many cases where this occurred to perfectly legitimate persons who were here working and contributing to our economy, legitimately.

What kind of troubles could occur hiring someone this way?

I guess it never occurred to the tenant he/she can move out.

A class I took years ago for special education talked about four stages of learning: 1. unconsciously incompetent - don't know that you don't know 2. consciously incompetent - now you know that you don't know it 3. consciously competent- can do it, and can explain it 4. unconsciously competent- been doing it right for so long, cannot fathom doing it wrongMost learning occurs in stage two, the best teachers are in stage three.

The loan to the end homeowner occurs when the flipper sells to them some months later.

These are the best books that I've found for beginners for fix-and-flip and wholesaling:------------------------------------------------"FLIP: How to Find, Fix, and Sell Houses for Profit"Rick Villani and Clay DavisISBN-10: 0-07-148610-0ISBN-13: 978-0-07-148610-1"Getting Started in Real Estate Day Trading"Larry GoinsISBN-13: 987-0-470-41862-8 (cloth)------------------------------------------------As for earnest money deposit, it's not legally required for a valid binding contract (EMD is a deposit not consideration), unless the parties specifically agree in the contract that EMD is required or there is an unusual situation like California pre-foreclosure of an owner occupied home (in that situation CA law requires a nominal cash EMD of about $100 if I recall correctly), and some other states have some inane consumer protection laws regarding pre-foreclosure of owner occupied homes.Having said all that, if you are buying from a For Sale By Owner (FSBO), then I suggest using a 0% interest promissory note for the EMD, that is redeemed upon completion of the inspection period or upon contract assignment, whichever occurs first.

What, really, is the harm?

Sell the beneficial interest on a "contract" to give you more control (and less risk) if default occurs.

And with all the overbuilding that occurred, there are a lot of opportunities out there to buy below market.

Watch as sales occur and what price it bought.Once upon a time we were looking at houses in Sugarland, TX.