If the story is too good to be true, send them on their way.One thing we now do is hold the deposit, more than once management companies disappeared on us with deposits.

When the aspects of servicing are explained I never had a borrower who refused to pay the expense, it's generally less than PMI.Hope you deposited all payments as soon as you got them, the date they wrote the check and mailed it is not the date of payment, the date funds are received is the date of deposit.

You'll obviously have quite a few credits from prorated rents, prorated taxes and transfer of security deposits.

Normally, do wholesalers give the seller a deposit?

But I would not return the security deposit until after he got everything out.

I think I got in for first and last months rent plus a security deposit and I negotiated a purchase option that was extendable for a year (2 years total).

@Andrew S. Lots

I wrote in the original contract with the seller that I will have a check held at a particular title company.  However, the buyer that I assigned the contract to is using his own title company.  Do I need to worry abo...

If you are going to be putting up all the deposit money and getting a percent of the profit at the end, my thoughts are that you would have to have an equity interest in the property to make everything legally sound.

One essential element is that you need to figure out what is going on and make sure you get a non-refundable deposit if/so when they bail, or you have to evict them, you are covered.You still need to figure out why they aren't getting a mortgage and whether, given those circumstances, the lease option is still an acceptable risk for you.Finally, if you are fixing and flipping houses, the opportunity cost of having your money tied up in this house essentially for ever is very high.