The purpose (way back when) was buy it and then parcel it out.

We have been in a stable and growing economy for a while, a downturn is very likely, which will definitely lead to rates stabilizing.  

I'm new to real estate investing and my main purpose for getting involve is having a cash flowing stream of income that will eventually replace my current 9-5.

Sent out about 20 distressed homes leads to wholesalers in hope of them making a deal and me sitting in on the deal, but no such luck.

Don't forget the utilize the 70% percent rule and to subtract your rehab costs to determine your purchase price.Using independent wholesalers may give you the opportunity to find better priced deals, but you'll have to do much more leg work to qualify the leads as these groups will not hold your hand as much as the aforementioned. 

I can understand the concern because of the odor, but your question did not include smoking marijuana or taking marijuana pills for medicinal purposes. 

For loan qualification purposes, you might be better off capitalizing. 

Up until now I have been sending out direct mail and talking to leads on a daily basis.

Wire reversals need to be done really fast.In this case even a default would lead to big damages on the resale.

It is usually favored for the lead not the LPs