As a side note, regardless of your brokerage once you get a certain amount of transactions and experience you can opt in to Redfin's referral program.

Lessnick and they do not show any record of my transaction but that if I send $3500 more to them they will fund me.

And the inspector also threaten me if I do not make fix, the house is illegal for living.

Thanks for clearing this up, hope Amir reads your post before doing something illegal.

Could this be considered illegal or fraud in any way??

BTW, if your family member is trying to negotiate a discount, the only likely avenue would be a short sale and no other family members would be eligible to buy it through a short sale due to arms length transaction and non related parties restrictions for the short sale. 

I've googled and have a basic understanding of what a revocable living trust is, but how does that apply to a real estate transaction?

Wholesaling isn't investing and is illegal in many states. 

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Top producers just make more money for their clients and they are able to mitigae all sorts of transactional risks.