If I can get some help in structuring a deal so that the seller (who is a trader getting some amount of control over the asset from the bank, at the moment) doesn't circumvent me in order to be able to offer this distressed property.

I'd bet the buyer is actually making an offer at 20K and simply saying he can't borrow to provide any more and if he does, would want you to carry it. 20K doesn't cut it for you.I might consider being less greedy in avoiding some prolonged transaction and using an option at 25K, and flipping the option to your buyer for 5K. 

@Wayne Brooks The sale last year was a cash sale for $5,310,500 from an outside investing company to American TV and Appliance of Madison Wisconsin, making them the current owner and once occupier of the building.I spoke with the listing agent on the property and he said:The sale of the property last year was arms length The estimated rent for this property could be around $5.50/SF/YR   The replacement cost for this building would be about $110/SF.I would agree that the current asking price for the property is a little bit "greedy".

I wasn't greedy either in the end after doing the double close (and I had the cash so didn't have to pay for transactional funding) I made just under $2K on it. 

I always think back to Warren Buffet's fearful/greedy saying.

(It was the BANKS that got too greedy back in 2006-7, and wise investors already saw that, and DIDN'T get burned by over-leveraging at that time).

Starting with a greedy asking price is a fundamental mistake from which it is difficult to recover and you create a negative marketing spiral - - wait 30 days to learn, oops too high so adjust the price which signals the mistake and if another 30 days lapses,you just signaled there's something wrong with the property (when in fact that's not true at all).Setting a FMV is not kid's play.

I think it depends on the investor, but in general, you don't hear people talking about "Real Estate Traders" or "RE Speculators"   As the stock market turns nasty in the next 18 months (my prediction) I believe housing will suffer a bit.  

He was off 20% and he didnt account for 1 year of carrying costs and whatever cost overruns there had to have been.Moral of the story, dont get greedy wholesalers and never over estimate your ARVs to your buyers.

Spell out the details of the deal in a way that us greedy bastards can see how we make money on this and we will flock to you.