That $1000 could either be refunded to us or credited on the next tax bill which we chose to do the credit. about a month later the lawyer who completed our transaction sends us an email saying the sellers lawyer knows that we ended up getting a tax credit and that it is owed to the sellers, and that they would take legal action if we didn't refund it. basically my question is how does this usually work out, are they entitled only to a prorated amount of it, are they even entitled to any of it?

If he has cash, and enough of it, maybe he can offer the owner a significant down payment for the home and they can work out a payment plan together for the remainder. 

It would take a special case to get it to work out properly.

Wholesaling is labor intensive until you grow big enough to hire or outsource. 

This honestly seems like it could be a cash cow if the numbers work out and you do it right.

Hopefully the numbers work out!

Up till now I have always worked directly for someone else, so having people work with me is something I'll have to experience and work out the kinks as I go.

It took focused intensity, punching them in the face one by one, smallest to largest.

I Try different workouts, curiosity takes me there.

Things rarely work out perfectly, and they are taking some of the liability off your shoulders.