Even if you 100% believe their story - that they too were unwitting victims of a "bad actor," then you can only conclude that they're incompetent, uneducated and extremely negligent. 

I am curious what your research concluded!

We haven't concluded on that yet but he does handle the day to day to keep the stress off of me. 

Despite the guru fed “misinformation” about all these under market price deals, they are actually very rare and require (1) the investor recognizing value that the seller and the rest of the market misses or (2) a seller with a need for an immediate sale and a buyer with the CASH immediately available to conclude a very quick closing usually forgoing inspections, financing, and other contingencies. 

Because the chances of successfully concluding a wholesale transaction when you lack experience, knowledge and capital are so infinitesimally small that you’d be better off playing the lottery.  

If you conclude the leverage is so good that everyone comes out ahead that's fine but if you are only able to originate hard money debt that may be viewed as a red flag by investors who will question your experience and borrowing strength.

In my case I began a “serious” real estate education and experience in 1979 ; by mid 1981 I was able to successfully conclude what for me, at the time, was my first “major” purchase.

You already seemed to conclude you are forcing this deal, I would agree unless there's a reason why this property will appreciate significantly in the near future and the 40 year amortization schedule allows you to hold on for that to occur. 

I hesitate to conclude that it is grift as opposed to one type of business model that is usually lucrative to the mentor and sometimes successful for the "students" or "community".

Curious what others have concluded....or for any lawyers out there if buying under personal name and then transferring into an LLC diminishes your liability protection with the LLC.