possible deal? advice on structuring it.
I have been in this business almost 3 months now,and I think this is deal I've been working has a lot of potential,
The owner does not need to sell but he decided he wants to partner up to rehab the house, and I was going to wholesale it before but now a RE investor/broker decided to fund the flip so I would like to know what you all think about this,you can it be legal structured. Thanks in advance. Here are the numbers.
(Homeowner)- will donate house to the project
ME-. will manage and provide GC, plans, permits,and overlook project.
INVESTOR PARTNER . will provide funding for rehab(repairs), market and sell property
costs of repairs 65k-85k
holding costs.( gas,insurance,taxes,electricity,water/sewer/trash)
apr -1,204.00
realtor fees 6% -19,500.00
title-escrow fees - 979.00
total Selling costs - 21,683.00
Projected profit and split
projected sales price 325,000.00
less costs to repair/hold/sell 21,683.00
total profit - 303,347.00
projected profit split
Homeowner - 151,673.50
ME AND MY INVESTOR . - 151,673.50
Split between MY INVESTOR AND I
INVESTOR - 75% = 113,755.00 + 19,500 (Realtor fee) = 133,255
(after rehab funding) 48,255.00 - 68,255.00 depending on rehab costs
ME - 25% = 37,918.00
can something like this be structured? what other options do I have? I have been marketing to wholesale, but since the owner does not want or need to sell ( his house has been sitting for the past 5 years) should I go ahead and get this deal done if it can actually be done. thanks. im really new and would like an expert advice =)