How do you structure novation deals in California?

[Manuel Angeles]

Novation deals are when you renovate a house for a homeowner/seller, and then sell it, and then split the profits with the owner.

Are investors doing a lot of these in California?

How do you structure them?

Do you record a lien on the home for the renovation budget?

And then another lien as a shared appreciation mortgage to split the profits?

How would you offer a novation to a homeowner who already has their home listed on the MLS?

I'm in Los Angeles, CA.