Investor Contracts, Am I Crazy?

[Rusty Haake]

Hi Team!  I'm a homeowner with a steady job.  I'm trying to get into this real estate hustle. 

I've identified several properties in South Dallas (Gentrifying, 75211 if you're curious) that look like winners.  3b/2ba for $250k ish. 

I'd like to get a purse together to make a cash offer.  I suspect many of these homes would go for $220k in the presence of a cash offer. 

I can cover $120k with my savings.  I'd like to bring in 2 partners to help with the rest. I'm trying to find precedent for this kind of arrangement. My first stab looks like:

Partners wires me $50k.  I buy the house.  I improve it - these aren't full rehabs because I'm still new, but I can add value through clever landscaping (I'm great at that), new paint, new siding... easy stuff. Bank re-appraises at $250k. Refinance 80% out through my mortgage guy.  Pay back the partners, keep what's left. I get tenants installed.  I suspect I can have the house turned around and renters in there in 3 months or less. 

Is it a realistic to offer the partners a 10% return in 3 months?  They give m $50k, I go into hustle mode, I give them back $55k? I believe a hard money lender interest-only loan is the closest functional equivalent to this, and their interest-only loans are much different.

All guidance is welcome.  Thanks team!