In theory, I would owe $400,000 on a property worth $1,300,000.In order to pay off the $400,000, I would then look to cash out re-finance the $400,000 to pay off the original owner.

And that is a mortgage the property owner is pledging to secure your option.

These guys could be total crooks but most of the time the PM is just trying to get money back they advanced an owner for a repair. 

No one will be as efficient as an owner.

LL is original owner - bought/built in 2003, he's an older man, probably looking for the cleanest, easiest exit possible. 

Todd is the owner and appears to run a pretty good operation.

I am one of the board members for the West Suburban Building Owner's Association in Oak Park/Berwyn area.About / Members – Neighborhood Building Owner's Alliance (nboachicago.com)You can find a bunch of groups to attend at our parent organization's site, the Neighborhood Building Owner's Alliance. 

Owner wants anything above 1mm - house is in great condition, owner just doesn't want to bother with the selling, How Do I wholesale this house?

Hopefully you had a pet deposit and addendum to help with that. 

You can get a mortgage loan as a business owner.