Hi @Sam M.there are great answers on this post but I want to clarify something.In a real estate transaction most of the items are negotiable.

Are you able to close the transaction (have enough money (and/or credit) ?

It's two seperate transactions for tax purposes,  neither one changing the outcome of the other just because they occured at the same time... in theory it would probably be better to simply have the amount of the commission deducted from closing costs if at all possible, but if compensation was already being offered througu listing broker, it is what it is.

Wholesaling remote, it is easy to keep the transaction,...transactional.

Go to an attorney specializing in Texas real estate transactions who can set the whole thing up - if the attorney you're using is not familiar with the optimal ways to insure wraps you're using the wrong attorney. 

Personally never heard of this scheme or way to set up transactions. 

Cant speak for Nashville, but nationally Redfin recently released a report on their own transactions (they can see both sides of it) that average commissions have risen.This is no surprise to me as I predicted this would happen far in advance of the settlement.

We want to do this transaction so we can upgrade our living space, have another rental (our existing house), and eventually rent out the new house (his house) after we grow out of it.

As the agent I typically become the face of the transaction. 

It's probably being done in an illegal fashion from the way you describe it.