In 2000 I decided to develop the lots myself and sell to hippies, I was going to buy/rent a backhoe and hire a worker to dig the trenches for electric and septic and buy a water truck to deliver water.

Sean D - If you're illegally posting signs (most bandit signs are posted illegally and we at BiggerPockets DO NOT condone this technique for marketing!)

There are too many cases like this throwing people out of their homes illegally.

Come to find out the property that I am interested in buying stands along however the property next to it has a different parcel ID with two units (one illegal).

It should also be noted (since you've tagged this with rent to own) that lease options are a little tricky in texas, and many people's attempt to do them is illegal.

You must give the custodian an estimate so that they can file.You can do basic management.Saying the IRS will crackdown looks like a scare tactic or their saying its illegal while its not.

. :) I've been reading as much as I can and listening to a lot of Sean Terry's podcasts about wholesaling and I have some relations with people that I think I could get their property under contract and flip it to and investor, but I guess I'm more scared of the pitfalls of 1)Having something I could have to close on if I can't find a buyer(I know there should always be out clauses) 2)since I do have my realtor's license (but wouldn't be representing anyone) getting in lurch for what some people may say is a net sale or how wholesaling is "illegal" I guess is the real question I want to know is how do you go about getting over the fear of it and two how do you actually structure the contract.

A newbie can get with a well established listing aagent and hold open houses for them getting current leads of people buying now or soon.If you want to find flippers, just stop at homes being rehabbed, if they aren't there a worker will tell you when they will be.The emphasis on finding cash buyers is waaaay over done, most large rehab organizations leverage deals, obtain construction financing and obtain loans.

Maybe I am just being glass half empty but I would love to know if a competent, smart, hard worker with integrity can make money doing this stuff in all market cycles...

Presence of illegal light bulbs.?!