I just feel vulnerable at this stage.

Leads are in charge of the deal - making the management decisions and executing the business plan.  

The key to wholesaling is to go into a cash buy contract fast and assign it to an investor within days of executing that contract.

I feel as though I have no questions on executing this plan.

I assumed the first firm executed flawlessly until I knew better.

That's irrespective of your involvement and/or reporting.You can request info from the law enforcement agency that executed the warrant to find out what the charges were and decide if you want him there at all.

I'll give you the highlights:1 - The cost to get control of a property is minimal, and if you do it right, you should recover those costs almost immediately2 - ...which means that cash can be reused quickly, and over and over again.3 - There are 3 spreads where the profits come from -    a - Rent money   b - Option Consideration   c - When the Option agreement is executed and the sale made

It all comes down to where you can build a team and execute your business plan! 

What markets do you think are most vulnerable to a drop first and possibly most severely?

This should not be seen as a vulnerability but an opportunity for growth.