Partnering with existing home owner to flip his property

[Brett McDaniel]

Hello BP Investors,

I am looking for advise on an upscale home that I am analyzing for a fix and flip. The property will have an ARV of $467K and the rehab budget is about $180K due to extensive damage from pets. So, the budget does not fit into a typical hard money or private lenders underwriting requirements of a LTV of 65 - 70% of ARV.

In this case, has anyone ever formed a partnership/ contract with a home owner to improve the property without purchasing the property outright form the owner?  In other words, improve the property with the existing owner holding title and sharing a revenue split at sale after the property is improved.  My thinking is that I would save money on the closing cost, cost of money and create a better profit margin to share with the existing home owner.  Obviously, the caveat would be a strong contract to prevent any disputes during the whole process.

Any advise is greatly appreciated!

Brett McDaniel