What I am unsure about is if the whole 60-40 rule around payroll deduction vs owner distributions within an S-Corp can still apply in this situation if the filing entity will only be the S-Corp but the payments are made out of LLC #1, the disregarded entity owned wholly by the S-Corp.

It certainly made me rethink my strategy, after seeing my profits disappear.If you're an accredited investor, I'd say it's time to change course.

What made you interested in investing in this type of deal?

To give you more time to find your new property.You have the info for our online order portal now. 

What made you interested in investing in this type of deal?

Maybe things turn his direction and I realize I could have made a lot of money at his price today.  

So I am interested in managing them myself in order to learn. 

Great question Aasin,In order to not lose the deal to another buyer or wholesaler, most look to sign the contract with the seller THEN flip the contract to another buyer/investor.In addition... 

this is me and my partners 1st deal we got 14 days to find a buyer/ or find another exit strategy.My question is, how can me and my partner work with a private lender to get this deal closed if our buyers we made contact with are not serious about closing but we know there is money to be made in the deal!?

The skies the limit especially if you have a house that could potentially be made into a duplex.