We would calmly respond, "Do what you feel you need to do." 

Speak with your CPA about waterfall schedules.You would need to modify your operating agreement, but it may be preferable to 1099ing yourself for management, which would expose the management fees to SE tax...

We had to gave our equity partners second on the water fall with a 9% pref return and an additional 20% of the profit split. 

I’m just wondering if anyone has done anything like this and if you would have pointers.. my wife is very nervous about doing this and I need something to calm her nerves.

As a result I feel incredibly focused and much more calm because I'm not thinking about things that just cloud my head.

Stay calm, educate the seller, and win the deal at the closing table!

The guy was completely out of control, cursing, swearing calling me every derogatory name he could think of and his wife kept shouting at him to go back inside and calm down when she wasn't shouting at me as well. 

Keep all communications calm and professional, preferably in writing.

@Gino Barbaro I'm seeing a mix of pref structures (upside potential, waterfall, etc.), but the rates are usually around 10-12%. 

what i see is patience .. last thing folks want to do is get pressure from wholesaler  who went into a deal for too much money in the first place and cant back track on price.. so wholesale price too high rehab cost high and prices calming down or coming down 5% or so.. this leads to deals not working.so in my mind you need to calm down slow down and Pivot..