I liquidated a majority of my stock market/mutual fund holdings slowly since Aug (I think stock market is near a correction as well) and have picked up 5 properties in Central WI..  3 duplex, 2 SFR..  

Should I send the letters anyway and try to get the funding somehow afterwards?

Still am short because the withdrawn money from my account is not viewed as repayment but as a further decrease of funds, in ADDITION to the gifts.Stressful, educating experience here. 

I am currently doing the pre-work for a starting investment (read that as trying to figure out funding).

We have all of our funds tied up in our most ambitious flip yet for at least a year, so this is going to be a scouting trip and not a buying trip.I've been interested in Lubbock TX, for a while, and that's the place I know the most about.  

We have NEVER purchased a home in our life, but because of the awesome advice and encouragement we find on the Bigger Pockets Podcast, we are excited to say that we are very focus on putting together the funding to purchase a duplex that needs a little TLC in the Metroplex.

When its sold, can the funds be use to pay off their current primary residence with a 1031 exchange, or can that money only be used towards the purchase of new properties? 

Any income earned from my self employment is 100% disposable therefor its what will fund buying real estate for me.

Is it legal to raise funds for an apartment building?

I understand that there needs to be some kind of cash flow to fund my life and endeavours, which I'm currently working on.