I have an opportunity to rehab a property in a Joint Venture with the current owner where I put up the rehab money and we split the profits upon sale.
Have you done something like this? What kind of contract would I need to protect my interest if the seller decides not to 'sell' after the rehab?
@Naveen Kumar yes this is a great strategy. You will want to put the property into an LLC that you are both members of. Make sure to have your real estate attorney draft all the documents so you are both protected.
I actually think that's a hell of an idea. You are both putting equal interest in the property, either by owning or fronting the financial aspects. To JV with someone with similar interests plays an important key in motivation later on if any hiccups arise.
You would defiantly want to put it in an LLC to protect you both after renovations are completed. I am still newer in the industry so no I have not done anything similar. However, putting the JV into an LLC is an inexpensive way to start on the right foot and air out all communications now to avoid many mishaps later. You need to protect yourself. You can be kind but remember, generosity and business are two different things.
Good luck to you both!