First idea :What are your friend /family situations like ??

I am simply stating what I would do if I were in your exact situation. 

As far as an s-corp, it is not usually a good idea to hold rentals in one, as there are issues if your strategy changes in the future.S-Corps may be beneficial if the income you are producing from real estate is ordinary income and subjected to self employment taxes (like flipping homes, wholesaling, property management).Be sure to talk with a CPA that knows your entire situation before making this decision.

I wasn't too sure of your family situation.

If the numbers work and you are confident you can cover the cash flow in a bad situation then do it.

What situation is he in that is causing him to not be able to make payments?

However, one thing I would add is that, when vetting a Sponsor/deal, their acknowledgement and analysis of a "bad" situation is certainly welcome.For example, a sensitivity analysis that supports say a 2-3% return even if occupancy and rents don't come anywhere near projections, is still relatively attractive given potential returns on other investment vehicles.If a Sponsor you're considering is all rainbows and sunshine, I would take that as a red flag and move on.

You're assuming the wholesaler can't close the deal themselves, while that's certainly possible, you can't really say for sure without knowing what kind of contract they have with the seller and what their financial situation is.

That is the exact situation I am in right now.

Looking for any tips, ideas, or anyone that has been in a situation like this!