You're out whatever money you've wired him and whatever fees your bank charges you.If you want to play along (google scam baiters or look at 419eaters.com), have him send the check.  

Given carrying costs and transaction fees, along with the amount of capital you would have to tie up, if you do not your anticipated ARV at sale you could be in trouble. 

I am interested in selling my house and purchasing an owner occupied multifamily but I am hesitant as I just paid $7k closing costs, will have somewhere around $7-10K closing costs on the multi and will pay a 4% agent fee for the sale of my residence.

In Bay Area, the downturn in year 1991 and 2001 was only 10%, about the same fee/cost (6% agent commission, escrow fee, property transfer tax, owner title policy etc.) to sell a property.

As far as license for wholesaling like @Chris Heeren said, its gray, the terminology that dictates what activities  require a license are (for a fee and for another) and a fee is described as compensation or a thing of value, so it doesnt have to be money.

I can tell you this, it won't take long to eat up $44k in attorney fees.

Impact Fees?

That doesn't even include their fee which they would add to the final offer price to their end buyer.

I have $1,800 into the house already for inspections, and appraisal fees.

I'm looking for reasonable fees, and of course not needing both members of the LLC to be present to open a new bank account.