When any portion of principal is not paid back, the INVESTOR is taking a loss.  

Is this the portion of your mortgage that goes towards principal in each month over the first year?

He says he will have his bank do a credit check and have them notarize it for the credit check portion.

Turns out getting to do the tear-out portion and get paid for it is a treat for some.

At least, like you said, until you recover a good portion back from it.

I don't know where the term "wholesaling" came from - maybe a car salesman - it only makes sense to me - if you are an investor (one who controls, buys, contracts for, auctions or assigns/flips real estate for a profit) you are purchasing below market ( it would not be a wise investor who pays retail - unless for personal use or redevelop to a higher and more profitable use) - - I prefer to be an investor - to me and others in this business who see many of these folks who call themselves "wholesales" as less sophisticated in the real estate business (only understanding a limited and small portion of real estate) not a serious professional and knowledgeable making equity profits - others see them as opportunist often times getting over on sellers sometimes unintentionally.

If not, then a portion is deducted to pay for what the tenant failed to do, and then returned to them.  

In practice the tenants rarely sue, if she does I would just refund her the disputed portion of the withholdings to try and avoid court.

She is still trying to piece together her portion of my father’s pension, her own very small teacher’s pension and social security to make ends meet.

This way I never need to worry.The battery-powered keypad is absolutely vital should wifi, internet or apps fail.