I'm selling a home to a young couple on Contract for Deed (Land Contract), which is eligible for 1st time homebuyer's rebate (I've had several CD buyers get their checks already, in 4-5 weeks).

The end result is that they are timid when dealing with ANY investor.The type of Wholesaler your referring to generally does not get involved with the REO game because you need to be a real player to flip REO's.

Join REI groups and start learning your market area and the players.

@Joe Gore correct everyone buying at foreclosure auction buys in this manner why would a sale from a bank that just happens to be on MLS be any different.the local big players will be tough competition as they can afford a bummer or two

In my market, the average is probably about 1% (we have a lot of retired farmers and other folks who see this as 'better than CD returns').

That's a real estate match made in heaven.Secondly, though, I know if these investors are trained "right", they will become players in my local area. 

Once I buy it and it is assigned to me I just sit on them earning  statutory interest sort of like little CD's.

It is a case of paying the cost and feeling it is the right thing to do but unless you are a major player it is not warranted.  

Again, great progress but want to give you some ideas to think about in how the big players are thinking about it.

There are properties that cash flow in where I live (Central Valley) but in class C/D neighborhoods with poor schools and high crime rates.