I am more about my annual ROI and what my downsides are and what you are willing to do to protect them. 

The downside is someone could scoop the deal while your trying to find someone to assign the contract to.Wholesaling is low on my list of what I would want to do with a property but I'm also an agent now so shouldn't have the legal issues.  

The other option you would have is to find a bank that will give you a commercial loan, you can then put in your LLC's name right out of the gate, the downside is that usually the terms on a commercial loan include a higher rate, a shorter amortization period and usually a balloon payment.Since this is outside my state (Illinois) I would also consult a real estate attorney to make sure you are 100% on the laws and regulations of Kansas.

Syndications are good, but there are also some downsides.

Maybe Pat now knows (or believes) you're a wholesaler and wants downside protection:  a higher EMD.  

It's a great scam - hell;  there is zero down-side for them.

Again, there's no "wrong answer", your only downside is "less right". 👍🏻  

That being said, I am trying to understand the potential risks and downsides of this investment vehicle, and one potential scenario I am having trouble understanding is this: the borrower has a lot of delinquent taxes; say, for upwards of 25 percent of the value of his or her property.

She wins, because now she is going to get all my referral business for the county she is in.Here is the downside. Lying

I agree with your comments about the higher valuations and the age of the duplexes - which I see as downsides.