Pay special attention to #4 and #5.An LLC is useful for two things: anonymity and legal protection.

And what kind of protection are you referring to?

Asset protection doesn’t work, any entity veil can be pierced, you’re fooling yourself if you think you’re protected.  

People always go for the cheapest financing, quit claim in to an LLC and go about their lives, when they've essentially done nothing to protect their personal assets. 

Hello BP Community!My name is Jed Butikofer and I am currently located just outside Bakersfield, CA, but move frequently for work. Background: My mother was real estate agent and my dad knew construction so we flipped...

You will have less to invest, but you will spend within your limits.You must maintain control of your finances.

and it isn't about protection from defaulting...  

An LLC is useful for two things: anonymity and legal protection.

As I understood that allowed me to have an extra layer of liability protection. 

if the wholesalers actually follow the law and make those disclosures and the sellers are not completely devoid of real estate knowledge those who wish to wholesale are going to spend a bunch of money only to lose the deals in the 11th hour.