Since you're not evicting and don't have any legal rulings or judgements they won't have any sort of use in actually putting the squatters out, but their presence will likely be enough to prevent anyone trying anything stupid.

Make sure you understand what exactly the scope of the search is, if they check for just liens & judgement or do they also check the tax status, federal tax lien search etc.. 

Now because we do not have much experience I have trusted her judgement for the most part, but as the time passes I am becoming more and more skeptical.

Against my better judgement I decided to do DMM, and it nearly destroyed me.I repeat IT NEARLY GOT ME DESTROYED!

Demons are simply fallen angels who rebelled from obeying God  and were thus kicked out of heaven along with Lucifier the most beautiful angel ever created, till God passes final judgement.

Also I think you are not serious when you say that - if a home owner doesn't want to down pay it means they didn't have money :-)I am not an expert and definitely the other experts can provide better practical ways to protect your down payment , But try asking for insurances , last 3 references , a contract with a tight scope of work , any judgements/ official complaints .I don't know for some weird reason as soon as I ask for half of these , they stop responding .

But our bank accounts aren't separate, so even though I enabled us to pay off his debts, that may not be considered an a judgement since it was "communal". 

If some one thinks that their $3000 is gone they've not understood what they purchased because that $3000 in no way guarantees funding for a specific deal or that we'll just take the borrower's (or often their agent who stands to profit) judgement on whether or not we should fund it.

In the unlikely event you do get sued, any judgement would be limited to the assets of the llc.7.

DO NOT pursue this without a title search as any liens and judgements against them could become your responsibility.Feel free to reach out if I can help