If you can do a value add and BRRRR it, that really makes the most money.  

Also file a complaint with the CFPB Submit a complaint | Consumer Financial Protection Bureau (consumerfinance.gov)Regarding do you have any legal action - you can prove you do not owe it but you will not get any compensation - courts have ruled long ago the only recourse you have is actual money you lost - there is no "pain and suffering" if a statement is incorrect and you have to fight with them on it.

If you insist on an LLC, to complicate your life and waste time and money, why not wait until after the 1031 exchange is complete?

Only loan that would cover your rehab is an FHA 203K (primary residence loan) OR hard money fix and flip loan and you would have to refinance later.

Come talk about your worries and success stories about private money lending, as well as to share your experiences and ask questions!

First wholesale deal question.I've got a property under contract with a $100 earnest money deposit.  

Would you lose a large chunk of money?

I was on a job with a gas crew and asked the same question and was told that all of the work that they would do would be of no charge because they would make more money once the units were separated.

You will earn a fee, learn, save then go on your own.

I purchased those properties by saving the downpayment.