Well one thing with the banks...I can't imagine they've got the time or resources to investigate issues like this.But let's give them the benefit of the doubt for arguments sake.

Gates provide identification and cooperate with the investigation when the officer was there TO PROTECT PROFESSOR GATES AND HIS BELONGINGS?

Anyone who, for compensation, sells, offers to sell, buys or offer to buy, or negotiates the purchase or sale or exchange of real estate...leases or offers to lease or rents or offers to rent any real estate or improvements thereon is required to hold a real estate license.54.1-2103 are the exceptions, if you are an employee of a real estate management company, an attorney acting in his official or professional capacity and if you are the receiver or administrator of an estate, then you are exempt.54.2105-2 penalties, costs of criminal investigation by the department or board, and $1,000.00 fine or all profits from such transaction, which ever is greater.

No broker wants to deal with the state licensing investigator over a couple hundred bucks.

You should also look up judgments against them at the county prothonotary (where they are located or where they have done work).The lockboxes are a good idea to use; just avoid giving the combination to just anybody until you have investigated their background a bit.You should have them get their insurance agent to issue a certificate of insurance where you are named as the certificate holder, so that you are notified of changes or cancellation in their coverage.

Remember that more investigation might be needed on an auction transaction than on a simple MLS listing.

One of the state investigators from DBPR spoke at our REIA and said a "reasonable" deposit must be made.

But is almost $10,000 in positive monthly cash flow today more acceptable to a cash flow investor than say investig the same amount for $5000 - you bet!

The quotes I have in are $25k ( measured the slap and completed a thorough investigation), $10k, and $8k.  

Only after rampant fraud will the Fed's investigate, or when someone with connections gets taken.