With everyone contributing cash to purchase the properties I'm thinking it doesn't matter but I haven't found much information regarding this situation.Also, I've talked to a few mortgage lenders and they have said it shouldn't be an issue to refinance after 6 months as long as it is in an individual's name. 

In the situation you described above that $305k with no seller contributions is your clients fault as well as the realtor.

Thanks @Brian Eastman - I have seen (or read about) people forming a LLC with their personal funds and their IRA LLC as partners, with a one-time contribution. 

Thanks and I look forward to contributing more to the Chicago area forum!

One theory could be that wholesalers add value by contributing inventory to the market that would not exist otherwise.

Thanks Matt, sounds like I need a strict screening process for prospective tenants and to make sure that I contribute a certain percentage each month to maintenance, repairs, etc. 

A good operating agreement will discuss what happens if you both need to contribute more money to the business (what if in 3 years you need a new roof for your investment property, but the LLC does not have enough money in it to cover it); what happens if only one of your is able to contribute money to the LLC for an unexpected situation; what happens if you have a serious disagreement about the direction of your investment (what if one of you wants to sell the rental but the other wants keep it); what happens if one of your expectedly passes and the other is now partnered with the spouse or kids of your friend; etc.I know you would rather save the money (who wouldn't), but it is a deductible business expense and may save you a lot of headaches later.

Again assuming you contribute to the cost of operating the busniess. 

I have a 401k balance of less than $100k that's still with the company but because my new role will be international, I won't be able to contribute to my 401k anymore.

@Jonathan Holmes @Marc Winter excellent advice, thank you both for your contributions!