Posted by eric the wunderworm on September 01, 2004 at 17:41:15:
Top 2 options that come to mind:
Do it on a deal-by-deal basis, where your interest in the property is secured by a 1st mortgage which is at least 80% below the market value of the property. Then escrow the amount needed for repairs (if any). That way if he runs out on the deal, you foreclose and get the house, and still have money in escrow should you choose to finish the repairs. Your closing attorney can help you structure the closing docs to do this, and would probably be willing to hold the repair funds in escrow.
You could form a corporation, with each of you filling a given roll, and splitting profits however you decide in your operating agreement. You would loan your money to the corporation, who would use it to buy and sell houses. You both get paid a salary and/or benefits out of the corporation. And if any profit is left at the end of the year, you divide it up. Set this up through an attorney.