Tax question for Joint Venture Rehab for SFR

[Chris Cabanilla]

I’m in a situation where my in-laws and I have agreed to split profits upon the sale of their house in Orange County, California. I would put in the rehab money to renovate their house. And upon the sale of the house they would keep $400K, and I would get the remaining profits.

which would be better in terms of saving money from tax purposes?

1) have them quitclaim the deed to me so I am added to the title and have escrow disburse the funds according to our instructions? Or

2) upon the sale of the house, just have them write a personal check or wire me the money?

Thanks!