Unique situation in Houston

[Asim Iftikhar]

Hello Gurus,

I have a situation where I really need some expert advice. So here goes:

Seller wants me to invest in a house to update it, cost associated to update: 10~12K

The ARV of an updated house in that area is anywhere between 185~195K

Seller and I will enter into a contract for 140K, and I will pay 20K up front

I upgrade the house (invest in it, list it, and get it under contract within 3 months). I choose the buyer, do all the paper work, close, etc.

When the contract closes, the seller gets the rest of 120K, and I walk away with whatever is left on top.

Has anybody done this before? Seen it? What are the risks around it? for the buyer, for the seller?

Thanks so much guys.. i am so grateful to anyone who responds.