Broadly for me/us I'd just say that our perception of where the market/economy is headed just informs more of a general intuitive appetite for using leverage.My view is that uncertainty in future market outlook (perhaps forecasted by leading indicators) mainly drives price volatility, and perhaps increases risk of lenders 'calling' revolving credit lines to meet their own liquidity needs.The more 'bad' the indicators are, the more chance that we perceive our lenders possibly wanting to 'call' revolving lines of credit, is the way I think about it.  

This is an excellent place to start - examining your assumptions, perceptions, biases and fear. 

And depending on the conditions, would we want them to happen (from a larger societal perspective)?

While some point to tax benefits or the potential for higher interest rates compared to banks, the real motivation is usually the perception that the seller can secure a higher price by offering financing.

A perception of a win-win is possible without sacrificing business objectives.What this looks like practically for us:Protect yourself- #1 (especially in California) make sure to insulate yourself, if things go south. 

A few months in the property is well taken care of(knock on wood), and now my perception is the tenant likes to work on cars so has a couple extra around. 

In OH, it's largely buying on out-state perceptions of value, and hoping rent's to meet that valuation. 

"The perception that housing is drastically undersupplied and that a strong demographic picture lies ahead is creating a false sense of security," according to a report by Zelman's firm entitled "Cradle to Grave.'

Originally posted by @Michael Ryan: I see wholesaling as a beautiful express of my faith being able to serve people in their time of need.I would be interested to know your perception of wholesaling after you have actually done a couple of wholesale deals.

Perception of values comes into play.