Hey BP,I am hoping to start a discussion on wholesaling in Minnesota and the best contract practices to follow.I have been looking for rehab deals mostly, but doing some marketing I always come across deals outside of my area that might be good deals to wholesale.

I seriously doubt that this is the case in most out of state rental markets, unless perhaps you are looking in class A neighborhoods.Con: You can't as easily or practically as a newbie buy under market value and force appreciation.Con: You can't obtain favorable lending terms through house hacking.Con: You have to pay everyone to do everything for you, which not only cuts into your profits but also robs you of learning the business hands on.Con: Lots of cons ... con men and women telling you everything that you want to hear to sell you the dream and take your money.

It is good practice to have a buyer or two that can work you through your first couple deals.

Is this standard or common practice?

The strategy is best described in Joel Greenblatt's fantastic book, and an outstanding practical guide and tool for executing it can be found over at the Magic Diligence website.You can do either (or both) of those using the "leverage" of Options, allowing for substantial upside potential compared to standard stock purchases, with dramatically reduced downside (if you want a no-hype education on Options, Erik Kobayashi-Solomon's book is great).Those with the patience and inclination can indeed use Option trading to make money in any market condition (Wikipedia founder Jimbo Wales, Amazon's Jeff Bezos, and "Black Swan" author Nassim Taleb all spent time -- and made lots and lots of money -- as options traders in their careers).For even more leverage, you could of course do any of the above (and much more) on margin (meaning your brokerage lends you money to do the investment), though that's not something I would ever do personally.Also, if you focus on holding stocks (or options) for at least a year, you benefit from favorable tax treatment of the profits.

Im sure it has been done but its not the "best practice".

Is it practical for a realtor who is an investor in one city to exchange services with another realtor who is an investor in another city?

Can you reach out to the caretaker's company and ask what the standard practice is for their other clients?  

What aspect of law do you practice?

In fact your realtor was illegally practicing law by giving you advice on how to handle the lease contract issue with your tenant.Changing the locks on a tenant under lease, especially with their valuables in the house is illegal and is called a constructive eviction.Talk to a lawyer in your area who deals with landlord tenant issues and evictions as their primary business.