Potential partner.

[David Smith]

Need advice with how to best approach this deal. I thank all in advance for their help.

I have a friend who who is 60 who has done home repair all his life (has built house from ground up). He spent it working for himself with occasional laborers to help. He knows alot when it comes to construction. He has about 4 rental properties. Financially I believe he is doing o.k. Being that he is in a stage of his life where it is likely he'd prefer to do less physical work but keep earning money i want to approach him about an idea.

My idea is to see if he would be interested in purchasing houses that need a decent amount of work done, myself doing the majority of work with his advice and instruction. Then buying the home from him. Seeing that it would be likely/best he get out his financial investment back fast (to invest in more property), I would like to finance the deal through a bank for the amount to get his investment money back to him. I'd like to have him hold the remainder* privately. He already has rentals and doesn't care to deal with tenants so I figured this might appeal to him to recieve a monthly income from property without the need to work with tenants. With our combined effort I feel this sounds like a good investment for both sides considering where we are in life. Myself being much younger I'd hold/rent out the property for possibly some time.

Example.
Estimated value when finished - Cost of house + Cost of repair material = profit

then split profit 50/50, with partner holding his part at prime rate over a determined amount of years..

I know this is very rough idea and I have thought about for quite some time. I would like to know any ideas you might have on approaching this.I have many ideas of how to go about it and am hoping for some better ones. Again I thank you for your time.