You could just draw up a joint partnership that ends at the sale of the property you own jointly.
I agree that your deal looks a little thin regardless of a partnership or not. What is your exit strategy on this property? What if you have to list it to sell it? Your fees for the transfer taxes and realtor fees will eat up most of the profit if it sells for your full arv.
Good Luck to you.
Hi snavas, I too think this is a little thin. I am studying REI and from what I have read you want to finish with from 20 to 50 % equity in a property after all is done.
Your person # 1 has a deal for a $100K property @ $75K after he puts it under a contract with an assignee clause. If he knows the closing is no more than $ 5K and he has assessed the repairs @ $ 5K for a total of $ 85K he can then market his contract to the person # 2 who he should allow to view the property and sign off on the repair estimates so there are no misconceptions. At this time, if there is enough figured for holding costs, person # 2 would have a $ 15K equity less whatever he pays for the contract assignment . Person # 2 would then be holding a property with less than 15% equity, which is doable but not the best scenario, perhaps 1 could negotiate a lower price ? And that is coming from a newbie who is trying to find the end of the rainbow, Heeeheeeheee !