Often, agents will disclose "foundation needs work" or "tenant hasn't paid in 6 months" in the confidential realtor remarks that aren't necessarily disclosed in the public listing, and you can cross off those listings pretty quick if that's a problem you don't want to currently solve. 

Chris in CA  and with a current RE Broker license you May bring in up to 10 parties to a fractionlized DT / mortgage / note WITHOUT any PPM reg A reg D. the broker uses the CA real estate agencies disclosures for these transactions over 10 and yes you need to then move to some sort of PPM Reg A B C D or what have you.. this is HML i started in back in the early 80s every loan we made was fractionlized. 

Real estate has high transaction costs - most folks don't realize to buy or sell a property it costs about 10% of the sales price (6% commissions and 4% transaction fees).Real estate is susceptible to harsh weather - during hurricanes, floods and freezes you can have significant property damage.

Taking the equity (around $380k assuming $850k sales price less transactions costs of 6%) is awfully tempting.Or...any other ideas?

Will I still be able to do double close wholesale transactions if I become a real estate agent? 

@Trent Burns, I believe with any type of real estate transaction you need to disclose your license status.

These sellers are typically opposed to having a realtor on either side of the transaction, so I would recommend you do all your homework on the bakc end by looking the property up on the county website to search for liens (yes always do a lien search) when purchasing a property especially FSBO. 

I've been involved in hundreds of transactions and have only ever put down $1 as a deposit.

@Jeremy Nault you could also cross collateralize-use the equity in one as the DP for a new one.As is typical with no money down, the new one probably won’t Cashflow well, but it’s creative :)Good luck

In a short sale or Deed in Lieu, however, the liens have to be addressed & dealt with in some way during the transaction.Do a title search and clear all of the liens by having the borrower clear them before your transaction or get the lien amounts credited to you so you can pay them off post transaction.We generally pay the full amount of the net cash for keys amount when the borrower vacates the property & leaves it in broom swept condition.Yesterday, we were surprised when a town refused to provide the transfer stamp, which we needed in order to record the Deed.