The reserves, and any other retained earnings, will be priced dollar for dollar into the purchase.If you are simply purchasing an asset (i.e. the 24 unit building at 123 Some Street), the reserves still remain with the business and you only get the asset.

One  2 bed/2 bath condo in particular they own outright and we have discussed them leaving money in the deal, something like a 60/40 scenario, where I can take a traditional loan out for the remaining purchase price. 

Check it out.http://www.biggerpockets.com/forums/30/topics/163663-how-do-i-sell-a-mobile-home-via-rent-to-own-and-remain-compliant-with-dodd-frank

I guess testing the batteries once in a while makes sense but the essential point remains, these things seem to provide a low cost and low overhead protection from expensive damage.

(goes to paying investors initial investment back).Any additional yearly return is split 80% going to investors, 20% going to Sponsor.At sale, investor is made whole on their initial investment.  80% of remaining funds go to investors, 20% to Sponsor.I've typically been targeting annualized returns of 18%-20% or more back to investors, though that is getting harder to do as the market improves. 

I'm working on a situation where I physically cannot wholesale this deal at a profit, so I'm actively searching for other avenues...APV: $125,000Outstanding Mortgage: $100,000 (was a $200,000 loan)Is there a way I can structure a deal with seller financing so the buyer I find would assume the remaining mortgage and pay a down payment of $10,000 ($5K to seller, $5K to me)? 

I've been reading a book about real estate investing and the author who shall remain nameless makes a brilliant recommendation when buying REO properties.

He has maybe 4 hours of work remaining.

Also, a qualifying spouse can remain in the property until they pass or sell or refinance.Yes there are negatives like your equity shrinks, because you are using it and you need to see if this financial tool fits into your financial plans and lifestyle. 

Not legal advice, but my understanding: The CA version of the Safe Act remains silent on most seller financing.