There were a few minor issues that we didn't recognize when we bought it that an inspection would have pointed out.  

Should they be interviewed like you would a lender?

Interview multiple lenders, and not only Hard Money/Private Money Lenders.

@Dion DePaoli  out of sheer curiosity this morning I listened to a pod cast that interviewed the owner of Paper source I think it is @Bob Malecki  Bob said it was a good listen .the gentlemen being interviewed says that he has been buying notes since the mid 80's which of course I am sure he has.then he made what I thought was a pretty if not strange but unique statement.. the Kids interviewing them asked how he hands his foreclosures on his NPN... his answer was well " in 30 years I have only foreclosed once"  the kids were then scrambling as they did not expect that and of course its sound like they are personally buying distressed notes in Cook county and we know how tough that place is.

It's the one where they interview 3 guests.

I've lived in CA my entire life and recognize the tremendous equity potential here but cash flow is the goal for many people and many don't have the resources to invest in a market where the median price is $700K or $800K.

Hi Ben,Can't help you on the lender, but I recognized your name from Joe's podcast.

Didn't recognize the address one bit...  

His podcast and interview on the BP podcast are great references. 

Regardless of whether or not his intentions are malicious, a walk-through is, in my opinion, a key part of the vetting process as you should treat it like a walking interview.