Make sure that either you will be in state during the closing or that you work with a title company that has offices in Arizona and Colorado to facilitate the closing.  

That goes for any new construction deals as well.It sounds like you're a bit adverse to conducting illegal activities, so that is a good thing, if you want to deal in real estate facilitating transactions, get a licensee, you can do that part time too.

., how do we go about facilitating this?  

My only advice, find yourself a reliable, trustworthy escrow company that understands the wholesale transaction and will help facilitate it for you.  

However, I would need between 250-275k in cash to facilitate the sale and the majority of the investors I work with just don't have that kind of cash available.

Any tips on how to form an LLC for one flip in Massachusetts or to facilitate this?

I've begun putting our investors capital into perspective, and while "$1M insurance policy" sounds exciting at first, I have to remember I live in New Jersey where that could hardly facilitate two deals at once, if that.

When I find a property I want to acquire from marketing, I call him up, and ask him to facilitate the contract for a small fee.  

When one conspires with another in the commission of what is illegal or unethical dealing, when yo know you're buying from an unlicensed wholesaler, one who probably obtained a contract under questionable means, are you not conspiring to facilitate that transaction?

That said some titles companies may prefer that they don't facilitate the transfer - but I would insist that they do as it helps create a paper trail of exactly what is being conveyed.As @Wayne Brooks mentioned an estoppel letter is also highly recommended (and perhaps required depending upon state laws) - this is usually completed prior to COE, so there are no surprises on the day of closing (or later when a tenant moves out, pays the wrong amount, etc).