What am i suppose to do, or is there a better legal agreement?  

I am not offering legal advice this is strictly my opinion. 

Changing ownership "mid-stream" is usually problematic for the current lender.As always, consult your Legal professional for advice. 

The $4000 was to go right in the bank, in a separate account, as legally required. 

If you don't know the buyers personally (enough so you can call and ask questions) strongly consider taking another directionFriends don't let friends do bad deals, listen we all want warm fuzzes when working with people but the reality is, your running a business. protect your self at all time - its not personal its business. be objective (AND THIS IS HARD) but houses, don't have feelings, wholesale fee's don't have feelings, title company stamps and legal paperwork have no feelings, if your the feely type get a hobby or pour your emotions in another venue. real estate (demands) you to be at the wheel, and be ready to face the ugly truth."

Other strategies such as sub 2 transactions, installment sale transactions, leases and lease option to buy arrangements can be devised with TIC.Comparing a sandwich lease or master lease, a TIC owner you do not have to worry about the seller selling first before you sell; you can pass title as an owner and executed sales contract through and screw with your tears a partner or you can have a "power to sell"On biggerpockets we have talked about the problems with wholesaling, not being on legal title before we market the property.

Assuming that's something I can do legally (again, I'm very new), I have a few questions:Will a portfolio lender loan only a portion of a property's appraised value, if I only need a portion?

Building a team Depends on everything you guys are trying to accomplish..I will  start simple A game Plan Goals Exist strategies Good Legal Expert ( lawyer ) Real Estate Agent ( find deals ) Inspector Property management ( if  you plan on holding or making rental Properties)Wholesalers ( they will bring you properties )Handy Men Contractors ( you guys might not do it all ) Private lenders/ Hard Money

It involves a legal battle, a fraudulent contractor and much more.  

This can be a big expense, as well as a legal issue if you're dealing with tenants.