If you run rent about 15% higher, you will most likely attract those individuals who cannot rent at normally-priced places because they've had evictions or a criminal history. 

If the property was in fact held in a land trust, then the land trust company will certainly file criminal complaints against the alleged con man.So the original poster can ask the nut job applicant for the criminal complaints.As for the "legal team" -- talk to them and obtain case numbers for filed complaints (most county court systems areset up for on line case name searches, so one can type in her name and see if any cases are filed in her name), and any filed charges with state agencies that the "legal team" made.And if it turns out that nut job applicant lied about any part of the story, disqualify her immediately and forevermore, documenting everything and saving your records.

When I ran his criminal record, he was on probation for stalking.

Unless it is abated in a timely fashion, it becomes a criminal offense.Make offers on expired listings thru the agent, ur offer should be 20-30% below the expired price.

Do they do criminal background checks?

[No offence was intended].I am glad you are considering the idea of a REAL JV.

But this is real small fry stuff - a little piece of fencing, some poly for a floor project, etc. 

@Vincent M.Here are a few tips I'd recommendMake sure you do a good job marketing your unit, so you have enough applicants to have a solid set of criteria / standards.Utilize an online rental application to easily collect application informationMake sure you pull credit, criminal and eviction reportsFamiliarize yourself with federal and state landlord-tenant laws as well as fair housing laws.Feel free to message direct for specifics on any of these.

If I read your post clearly you should steer well clear of criminal money, at least until you personally are wealthy enough to insulate yourself from association.

This is grounds for their license to be pulled along with possible criminal charges.