Question for Veteran Investors - Deal Structure

[Benjamin S.]

Hello fellow BP investors,

I need some guidance from you veteran investors on how to structure this deal. Scenario:

Potential Joint Venture Deal with a Partner. Partner owns the property, and has a first on it. Property is currently worth about 400k as is. Needs about 35k of work. ARV is 525k. He owes about 300k on the property. He wants to partner on the deal. He has the property and I will invest the money for the repairs, bring my crew, and rehab the house to the top of the market. After the sale of the property we will then split the proceeds with him (ARV-AS IS - Rehab - Selling costs).

1) How do we protect our investment on the property if they decide not to show up to the closing table if they are the ones on title? Or they decide to move back in? We have thought about this and think that getting them to move out prior to rehab could help as well as having them sign a 6 month listing agreement before work starts so that they are mentally committed to the deal. However, we know this means nothing if it comes down to the fact that they don't sell once the property is finished. Anyway way to protect our investment here?

2) What's the best structure for this type of joint venture? Put our investment for the rehab as a 2nd, vest the property into an LLC with all of us as members, etc.?

4) How do we keep them out of the rehab process, and give them no decision making power in the actual rehab, pricing, strategy of the sale of the property? Is this even possible?

I know its a bunch of questions, but this is a potential smaller deal for us, and would be a great one for our portfolio of rehabs.

Thanks!