If you think a LLC without this insurance is protecting you, think about who it is that will be funding that LLC's legal defense. 

Then you can invest in real estate directly with these funds with tax benefits.

I'm interested in wholesaling it, but I don't know how to secure the contract without funding first and then turn around and get it to an investor.

- If you want, you can take the $2k upfront by funding $98k, that's what a lot of lenders do.- I would get a lender's title insurance policy to make sure you are indeed in first position and the person/entity you are lending to is the owner.- Borrower pays all closing costs, usually subtracted from loan proceeds upfront.- Make sure the interest plus points doesn't exceed usury in your state, I don't know what it is in Florida.

They would be using our funds to purchase and flip.I am looking for advice from other investors out there regarding Investor Loan Agreements and how to structure them to protect ourselves and ensure we can get our funds back should something go wrong.

The largest hedge funds have been doing this for years and years.

Wall Street bankers are looking at low bonuses this year, hedge fund returns are flat and some buyers of high-end real estate from China, Russia and the Middle East are cutting back.

@Scott Groves, The intermediary you select will have their own exchange accounts where your funds will need to be held.  

Plus if I can't get the funding the deal is dead anyway.

In its current condition only the 1st lien is in a position to recoup funds via foreclosure.