, you should get pre-qualified first with a Hard Money Lender, understand how the process work first , find a mentor in your area and learn the process before you go get on a property.

This type of transaction has very specific rules to make sure to speak to a professional who clearly understands that, and moreover understand exactly what you're trying to accomplish as this may or may not be a good fit

Have you been pre-approved with a lender already?

It has become clear to me that in Denver you have to develop great strategies and skills for finding the duplex/quadplex that will cash flow outside of MLS listings because you won't find them there.

Submit offer with pre-approval / proof of funds letter2.

I attribute my success to 2 factors.  1- unrelenting determination.  2- the ability to admit and identify that I need to utilize people who are better at a particular skill set than me and check my big head at the door.  

Any sub-lease activity would ONLY be to a traveling professional vetted by myself, a fellow owner and investor, and there would be financial upside above market rents for any willing owner.

It will be a panel of four professionals in the lending field, hard money, private money, conventional lending, and an investor that has used them before.

That isn't to brag on my skill, it's just to say that with rentals in general you can inflate out of alot of early mistakes.

The other part of wholesaling that is a possible red flag is Equity Stripping, AKA Illegal Flipping, this was heavily regulated till a few years ago by lenders, especially M.I. companies, they have relaxed the rules, but was a problem pre and post crash. seeing the increase in this activity seems eerily familiar,  like 2007 all over again. just be careful especially with your license, Disclose Early, Often, and in Writing, My license is too valuable to me to be involved in this type of transaction, so i steer clear. if my entity is on the contract, I am the one closing. period.