wholesale/retail sandwich? downfalls?

[Maurice W. Evans]

Ok, I am not wanting to do wholesaling in this area. In fact, i don't want to do wholesaling ever again, lol.

I am seriously thinking of joining a jv group. They say they specialize in a certain type of deal. (The benefit of joining the group is they have contracts etc that I can grab and use.  Yes, I know I could research and do it myself, but I don't even mow my own lawn, if I can do something smarter over harder, than i would rather do that.)

They talk of something they call a "sandwich" which looks something like this AFAIK

Owner Finance -> me <- Buyer

-Owner has hard time selling property and getting price they want

-I come in and get some kind of contract to deed with them

-they owner finance

-I go find a buyer who would not necessarily be approved for a loan but has DP and can make monthly payments

-Somehow there is a "jv contract" in here

-The buyer buys the house (from me?) pays me a down payment and a monthly payment

-The vig on the monthly above any mortgage payments (if any) of the seller goes to me.

-I get paid on the down payment, the monthly cash flow and finally again on closing after a couple of years when the buyer can qualify for a mortgage.

Somehow:

-there is no lease-option/rent agreement with the buyer.  

-IF they default I foreclose. 

-The seller has no relationship to the buyer.  

-I am not a lender. 

-This is all Dodd-Frank compliant.

I thought this sounded great and in line with my future goals until I was told there is no risk other than not every seller will do it and of course the possibility of needing to foreclose on the buyer.  

There is ALWAYS risk somewhere!

I do understand risk can be mitigated and I am also not afraid of risk at all...i just want to know what it is.  

What am I missing here?

can anyone clarify this process?

Does anyone know potential pitfalls?