Provide any policies or procedures in writing as well as telling them what to expect.Handle all matters as business and be professional about it. 

I explained the application procedure and that a credit/background check would be done.

What process/procedures change when operating under the LLC?

Anyone know the procedures in Texas to add an owner/member to an LLC?

However, it seems like there are some procedural twists and turns that are involved in such a purchase.Any tips or or things I should be aware of?

Learning the details about purchase offers, contracts, embankments, water rights, foreclosures processes, different types of mortgages, state auctioned property procedures, federal and state laws, etc.  

I feel kind of uneasy about this because he would have full control of my cash, does this sounds like a normal procedure ?????

Without knowing the exact, specific flaws in the foreclosure proceeding, and knowing the local laws/procedures, there is no way for anyone to tell you.

I will go to the procedures to report him, because this is the kind of things that discourages a newbie, trying to get into real estate.

The other matters I will handle according to my standard procedures.