But isn’t that…“Real estate agents must make a “reasonable effort to ascertain all material information concerning the physical condition of every property for which he or she accepts agency” and disclose this “to their client or principal and when appropriate to any other party to a transaction.” ??? 

Most note investors outsource the work including having a licensed 3rd party servicer.

Right now the hard part is waiting for it all to be built.

I want to be respectul to both parties, but feel regulation of some sort might be necessary.

For the guaranteed part, I am not sure how they do this.

The interesting part is that this property:1.

I would only recommend it in certain circumstances such as when a material fact is uncovered during inspection that wasn't disclosed or factored into the price (it should be a good reason that perhaps neither party knew about).  

The hard part is getting in front of motivated sellers at the time the they are truly motivated and convincing them that you are the most credible of all the people jumping up and down to give them a "cash" offer on their house. 

Here's how it works, regardless if it's on market, off market or off Broadway.1 - When a Purchase AGreement has been signed off on by both parties, the PA will say how much of a DP you are putting up, and how much financing you need.2 - Lender agrees to provide (if approved) the funding needed, minus your DP.3 - Closing date is set, usually at the title company used by the lender.4 - You bring your DP to the closing, the lender provides the paperwork for the loan.5 - You sign, among other things, the mortgage agreement, and your DP check and the banks funds are delivered to the seller.6 - You get the property.

Did you have a contract with the seller, or with the 3rd party wholesaler?