Structure of 3 person deal

[Mike Heth]

Hey everyone. My 2 friends and I are looking into a short sale opportunity with a lot of promise. They are each just finishing up their first flips, and looking for their next. I am more into buy and hold, and have an owner-occupied duplex under contract, but I would like to do a couple flips on the side if opportunities arise. I have a full time job, but they do random construction work for their incomes.

Here are the details:

$35,000 purchase price.
$25,000 (est) rehab/holding costs
$100,000 conservative comps in area

I don't have really any construction experience, but what I bring to the table is financing qualification. This house qualifies for conventional financing, but I am the only one who will be considered for such a loan. They would be doing most the work, but I am taking the risk of the loan, plus putting up more capital. My initial thought of how we could structure it is as follows:

I take out loan for $28k with $7k down.
We split the rehab costs 3 ways.
They do most of the work with me helping out on weekends and nights.
We split profits 3 ways.

If anyone has thoughts or experience about this type of thing, please chime in. Thanks!