This Tuco character is really starting to get to me.  

Check state security laws as they may be different, but 3 is pretty common.Put the money in a company bank account, about as safe as you'll get with that amount.The Operating Agreement forms the LLC defines how business is to be conducted, who has signature authority over bank accounts, the rights and obligations of members and management issues.

Wording in Mo. law is "facilitating a sale" that can be a wide swath of activities and will be defined by the RE Commission.

If you are looking to convert the property later,  consider delaying any major outlay until the scope of that conversion is defined.  

Is there anything here that may be defined as illegal practice?

The more you define your goals, the most "vehicles" this me membership can advise to help you succeed.

I also have 2 buy-and-hold rentals, and I've pretty much decided that I will  focus in a relatively defined area about 10 minutes from where I live (Decatur), since I'm going to be managing them myself for the forseeable future. 

So this is my process*Define my area- I buy in "very specific areas" based on age, school districts, locations, etc.

If you think this is out of character, than I would maybe file a missing persons or follow up with his next of kin.

I define A as highly desirable or lots of amenities.