Have it held in escrow by the title company or an attorney.

My personal portfolio consists of 4 rental properties and a total of 8 units, with 5 of those units being utilized as a STR. 

It's only for the lazy and unorganized person.

It comes down to finding the best level of protection that fits your budget.When I sit down with clients, I always discuss (1) their personal assets, and (2) what their current investments portfolio and other business ventures are before discussing (3) their future goals.

I am a self employed person and don't have W2 to qualify for conventional or FHA financing. 

Is it normal to have private money funds get wired to individuals business or personal account since he already has possession of the property? 

You can see if their coaching/personality style speaks to you. 

This was an off-market deal that my wife found through her personal network.

Are you saying that for one year after a property owner has lost a home in a tax-deed sale, they can still get it back from the person who bought it at auction if they pay off all fees related to the property?

The key downside to this repayment schedule is that the borrower is paying interest every month, based on the entire loan amount (including the amount being held in reserve for rehab draws), even if no draws have been taken yet.