There are a mired of other entities to verify necessary information to build such as; Department of Transportation, Army Corp of Engineers, local fire departments and so on.Good luck!

Tell the seller you will call the local safety authority to verify they issued a certificate to "licensed" electrician.

Working with a lender with a lot of 203k experience, a contractor with the accreditation as a Certified 203k Contractor (one who has been educated on the 203k and had financials verified), and a Realtor who see the upside to 203k's, you can get a 203k closed in 45 days (max 60 days depending on the lender's workload). 

A best practice is to have each tenant sign an estoppel verifying their lease information and status:

In either case, you should verify that you are eligible to transfer the funds from your existing retirement account (e.g. if the funds are in your current employer 401k, you will likely not be able to transfer until you quit your job).Considerations in Setting up a Solo 401k to invest in real estate:1.

Are you going to verify all of their licenses?

Id be cautious, verify the capital needed to bring it to market value.

I would definitely contact the PM and see what happened and then let them know of your expectations and verify if they are willing and able to meet those expectations if/when the next time something like this happens.

Of course, a W-9 is a way of Verifying this, and no need to 1099.  

You need to make sure potential investors are thoroughly vetted and verified and added to your system with all appropriate documentation including the amount they are ready to invest right now.