Flipping arrangement with contractor in chandler az

[MG Perkins]

Is it an attractive arrangement when a contractor would pay for all rehab costs (per investors plan) on a property an investor buys, to give first refusal option to contractor to buy the house at ARV minus the rehab costs?

This would give a definite buyer in the contractor who would now have "skin" in the game for refinancing from a bank. Original profit projections could still be made.

I have no cash reserves but want to start a portfolio. Am I missing anything about flipping practices?