wholesaling to a buyer using seller financing

[Patrick Britton]

I have a situation in which my wholesale deal requires either a cash buyer or hard money lender and thus $45,000 or $13,500 respectively.  both these amounts include the assignment fee.  

What issues might there be if the current seller is willing to provide financing?  And I mean procedural issues and additional documentation.  Would I use title to organize and handle the terms?

And what if the current owner/seller purchased the property using seller financing...could we go to him and simply change the "borrower" from the current owner to the new one?  

for example:  Mike buys a property from Jim in 2012 for $40,000 using seller (Jim) financing.  He put 10% down or $4,000.  A few days ago, I get the property under contract for $42,000 and am looking to assign it for $3,000.  The new buyer, Paula, wants to the property, but doesn't have $45,000 cash on hand to do it.  Let's also assume that hard money lender is out of the question.  She reviews the terms that Jim and Mike agreed to back in 2012 and would like to assume the loan.  

So, she pays a grand total of $9,000, which comes from $4,000 (down payment Mike made in 2012), $2,000 in "profit" (difference of $42,000 and $40,000) and the $3,000 assignment fee.

Thus: 

• Mike walks away with $6,000 cash and no further obligation.  
• I get my assignment fee and move on to the next deal.
• Jim is in the same, content situation he was in - only this time it's fair to assume that Paula makes for a better borrower than Mike ever did.  So Jim's risk is actually lower.  
• Paula gets the property with only $9,000 out of pocket and financing terms that are amicable 

Assuming Jim is fine with simply changing the borrower, what happens with the original purchase and sales agreement?  Paula isn't paying $3,000 to buy a contract with a sales price of $42,000 anymore.  She's paying $6,000 to assume Mike's loan and get title.  

As well, is there a simpler way to do all this?  

any assistance is greatly appreciated.