If they get paid up-front, how hard will they work to make the deal profitable? 

Alternatively, you could take a loan against your 401k for that initial amount.Once you’ve secured the property and paid the 5%, you can then work with a private money lender (PML) to close on the property once the deed is ready. 

They're wasting their time and money and he is hyping it up like they are doing a great thing, because of course, he is getting paid in the meantime. 

The commission paid greatly outweighs having to go back on the market and potentially getting less than you listed it for the first time.Some individual markets are better for this than others, but if you have an agent with a great strategy on the list side (professional photos, staging advice, etc) and you pair that with listing the property at a low price; you increase your chances dramatically of getting a bidding war and not only offsetting the commission but potentially making more than originally planned. 

I paid (twice) to regrade the slope of a commercial property that abutted wetlands.

The seller actually paid less in fees to sell the property off-market. (6% of $2.8 million would be $168k) He also got a quick and easy sale, and the buyer locked in a solid discount on the deal as it had recently appraised at $3.75 million What was the outcome?

Exit stragety will be when I refinance and any appriciation will also be paid back at a rate of 5%

They are paid through a DBA we started.Also, unrelated, how do I keep my profile picture from rotating 90 degrees.

John,Check out Inspectify.Even in our local market we use them for pre-purchase inspections, draw inspections, PM quarterly inspections.They are a saving grace.You're welcome hehe 🙏 Haven't heard of inspectify what makes them better? 

Just be aware that this adds another layer of complexity, and you’ll want to check with both your lender and a real estate attorney to make sure everything is set up correctly.When it comes to terms, owner financing gives you a lot of flexibility:Interest rate: You want something attractive to the buyer but that compensates you for the risk of holding that second lien.Repayment schedule: You can choose a traditional 15- or 30-year schedule, or go with something shorter if you want to be paid off sooner.Balloon payment: Many owner-financed deals include a balloon payment, meaning the buyer pays off the remaining balance after a set period (usually 5-10 years).