While I did take away some good bits of info, I generally have trouble trusting speakers who I know are there to try and upsell me on their program or whatever.

Fill in the foundation below.Check out the Start Here page http://www.biggerpockets.com/starthere Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.

If you do not, this sounds like a potentially very rough way to learn about them.To me the key phrase in your post is "they can't get a loan because of their credit score".

Does anyone know if this violates any kind of renters rights to take away his security deposit as more of a punitive measure than a recovery of actual loss?  

Like @Rick Pozosthe key is finding the deal!  

The key here is flexibility.

The take away from your example and this thread was the mistake of waiting for police to be agree with the tenants.

Best of luck,  networking and buyers are key for wholesaling. 

Also, try to get to know the area as best you can - it makes a big difference when looking at properties when you are used to the home values in the area  - Another key piece of advice that wish I had when I first started out was to start networking with other investors as soon as possible - not just online - but in real life - sit down and have lunch - maybe offer to take them out for coffee and pick their brain - you would be surprised how much you can pick up on in a casual conversation with someone who does this for a living  - the insight simply unbeatable.

Fill in the foundation below.Check out the Start Here page http://www.biggerpockets.com/starthere Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice.