Now I am actively searching for properties, getting the wholesale emails everyday and one caught my eye and I contacted the wholesaler and have started the conversation which come to find out I have spoken to him before with another investor and he remembers our conversation and "has heard good things about me".

Every conversation we have seems to lead to an excuse for not being able to pay or a new issue that has popped up.

So, pros and cons, but as a longterm investment, little has as strong a track record as publicly traded stocks.Just injecting a balanced perspective into the (rightly) real-estate-favoring conversation!

Just have a relaxed conversation. 

As every investor is different and has a different risk tolerance, this is primarily a conversation with your investors to find out what will work for you and your opportunities to put in front of them. 

Share with them what you're doing in real estate, the opportunities you're looking at, and what you hope to achieve.Through these conversations, you'll get a sense of the types of questions that people might ask about your opportunities and investing with you, so you'll get better at speaking to those things and addressing their questions and objections.If you have friends and family interested, that is the best, as they already trust you, and trust is the most important thing when finding passive investors for your deals.

I have developed state of the ART conversion strategies to maximize credibility so they fill in the form, but I am only willing to share so much  :PSo this is stone cold data.

Looking to buy lots to develop in Seattle - Typical LR1 / LR 2 type conversion of Single family to 4 - 6 townhomes.Also looking to buy commercial lot in Burien / Everett (near new airport) or North Bend (near new Swedish hospital) What made you interested in investing in this type of deal?

Having a conversation with each of them finding out their situation and explaining to them yours will only benefit you and them.

I'm sure a conversation with a title company will tell me all I need to know.