I've herd you should get the property under contract first but what happens if I get it under contract and can't secure the hard money?

Yeah, unfortunately this is just another example of some "investor/wholesaler" getting in the middle of some sandwich leas option type deal, likely to blow up.A couple of questions, the "didn't complete the short sale" sets off an alarm bell.Is title still in the original owner's name, as opposed to the guy who "sold" it to you on a lease option?

My concern is with the SEC and securities laws.  

You will have to hope the security deposit is sufficient.If the tenant leaves during the lease period, the government will pay only until the end of the month that they left.  

For about $600 a year I secured a surety bond for the deposits.

Did a 1031 exchange on another property to increase cash flow and secured a sizable line of credit on properties with large equity to buy more deals. 

That note would be secured by real estate and in my opinion is much safer than a stock, or risky bond.

The landlord and tenant may verbally come to some agreement other than what was in the lease.You should also have gotten the tenant security deposits at settlement from the former landlord.

We're offering discounted rent, no security deposit and no last months rent to the employee so we can get them housed.

from the Wisconsin Broker CE I have taken you are ok to show someone elses unit, hand them a lease, and even collect rent or security deposit, but you cannot negotiate that lease, meaning no variation to what is in print, nor explain anything in the lease.