The seller is desperate - if they weren't, they would have finished the job and taken all the profit for themselves.4. 

You are trying to squeeze a buck out of desperate or dumb homeowners.

Welcome Shannon.The first thing I would advise is that you Google and then go to one of the many meet-ups in and around Baltimore: Mareia, the real deal, Bareia, BWI, etcYou could network with wholesalers, agents and other investors face to face and get people that you are comfortable working with that understand your goals.I would also say that it is crucial to remain patient and not jump in to the first deal that comes your way out of desperation to " have a deal." 

In this market, the inventory is sorely/desperately needed - and I wish those sellers well. 

Etc, etc, etc.While I agree that there are great deals to be had dealing directly with desperate sellers, there are also great deals available through a good realtor.Mike

I am sure if you search high and low you will find a broker that is desperate and will work for almost free and try to make it up on volume.I only do commercial transactions as a principal broker and the issue of commissions or rebates never comes up.

However, we desperately need for thousands of REIA members across the country to go on record with HUD on this issue.

It is (IMO) quasi-legal stealing from unsophisticated desperate sellers.   

The more desperate a seller is, the more motivated you need to be for them to choose you!

What will happen is that cap rates will increase, so more deals will work, then cap rates will decrease again as the properties begin to stabilize, then the profits for GPs and LPs alike will be fantastic.Honestly I don't think preferred returns will change much unless an individual syndicator is desperate (and I would personally never give a desperate person my money).