I want the real estate part of my portfolio (I also invest heavily in index funds) to be as less risky as possible.

You'll also want to look over the financials to see how well the property is being managed and to make sure there is a healthy contingency fund in place.

They could achieve higher returns mortgaged to the maximum on a 30yr with their cash in a income fund than sitting dead in real estate.

Once your loan goes through loss mitigation and if there is no resolution then the bank will either foreclose or sell your loan in a very large pool to a hedge fund. 

Where are you allocating the funds to get the phones ringing and fill your pipeline?

My plan is to use the extra $1000 to build up a 3 - 6 month emergency fund, then build up my 401k and other investments. 

I had one guy tell me the last second that one of the properties he had for sale had a title company set up already and was looking for proof of funding so i stepped off it, i seem to run into this issue lately no matter what area it is, i'm looking to Wholesale in the Central, South Jersey and Philadelphia Areas, so any Thoughts, or Clarity from anybody who has ran into this issue too or am i not doing things the right way??

That's why I work with investor friendly lenders that fund privately and don't require W2s or tax returns (lending based on property not borrower). 

He wants to fund the project, while I provide the GC and contractors, then we split profit 60%(me)/ 40% (him).Most profits will be 30-40k, and we would split that.I like that I'm investing with someone else's money and paying no interest, but I lose profit. 

I'm a realtor in atlanta, GA and I'm having trouble find hedge funds that buy in my area.