Any warning signs or particular groups within the process (CPA, Lawyer, Contractor, etc...) to ensure that it is someone to be trusted?

Even calling We buy homes for cash signs and swapping lists. 

What makes wholesaling legal/illegal that you determine it is legal in your area?

Contracts were sent out and I was about to sign but I found out on my own (it was never stated in the listing) that this house is mandated by the town to be raised and my offer did not take that cost into consideration.

Don't sign anything until you have a lawyer review it first.

I use the interview also to determine there character.

Determine the charges and make the tenants pay it now or set up a payment plan (no more than six months).

I know my bandit signs get calls but I doubt if tenant buyers for this property would call a bandit sign.

Or you could buy powerball tickets with the very highest of risk.Part of the problem with this analysis is you yourself have to determine what the risk level for each of the investments but many people (especially on BP) would tell you that purchasing a place where people can live has much lower risk than some of the other options. 

signed contract for 125k 30days for closing .....