Pay the seller a percentage of the profits?

[Angelo Medaglia]

Hey y'all,

Total newbie here. I live in Southern Oregon and I'm looking to get started doing flips in Eugene/Springfield.

Like most other markets, there's not a ton of SFH deals out there and the ones that pop up have a lot of competition. I've been racking my brain lately trying to come up with an outside of the box way to make competitive offers and have sellers want to work with me as opposed to somebody else. One idea I've come up with is offering the seller a small percentage of the profits after the house is sold. I know a lot of homeowners would like to do the work themselves and turn a profit on their investment but generally lack the finances, knowledge, etc to do so. This would allow them to earn a small percentage of those profits while risking nothing. I might even be able to get away with a slightly lower bid on the property in exchange for a chance at a higher payout in the future.

My initial concern is that their cut might have to be cost prohibitively high in order to be appealing. What do you all think? Does anyone do this?