Despite my continual reminding him that beside his suggestion being ridiculous that he was a PASSIVE investor / limited partner, he continued some form of this behavior.  

If so, since you'd need to hire an attorney anyway, go ahead and contact one and ask them what is legal in your area.Have you considered a bird-dog fee from your cash buyer rather than a doing a double close?

I'd recommend offering something such as being a bird-dog, or something with value.

Full disclosure I have no dog in the fight of realtor/ whole saler /etc.

However, you will need to make sure that your losses will escape the passive loss limitations, meaning you need to change the default behavior of Sch E.Showing material participation can be a trap.

I got my start living in a 4 bed, 3 bath house with 8 house mates and 4 dogs, plus there was usually one or two more people on the couch or in their van in the driveway as well.

Long story short they brought dogs(against our house rules) the dogs damaged the furniture.

Many people travel with the family dog.

Lack of experience or qualifications, poor communication skills, Inadequate screening processes, lack of transparency in fees and charges, negative reviews, high turnover, lack of proper accounting/financial management and unprofessional behavior to name a few.

The common threads among prosperous real estate investors include knowledge, networking, and proactive behavior.