Opportunity to flip without owning

[Dave Gibson]

Flipping houses has always been a intriguing career for me but my "day" job has never allowed for it. I was recently laid off and have the opportunity to flip a family members home. I'm seeking some advice as to how to best handle the situation. The couple is getting divorced they have already agreed husband is getting any profits from the sale of the home. He is in financial crisis and is having a hard time paying the mortgage as is. The property is worth roughly 200k as is and they owe about 190k. So he's basically washing out and not making any money upon selling. The husbands son approached me wanting see what interest I would have in remodeling and flipping the house as they can bring into the upper 200's with a similar model selling for $305k. Loosely it has been proposed to pay the mortgage as we work on the property, list and sell it. The husband is also looking for a cut of our profits and I am curious as to what best solutions others have had on the site????? I am not taking ownership of the property but I am investing some money and carrying the mortgage while rehabbing the home. I think I can sell the home quickly after rehab (45 days total) for $260k. What is a fair offer for the husband?

[Account Closed]

Run , don't walk ... run away from that deal .. Its to risky in my opinion .. even if you had everything in writing .. If your good at handling remodels and project managing you can find investment partners that will fund you 100% and you can get 40-50% of the profits .. if your not sure how to or have no experiance doing rehabs ..then do you really want to invest your time and money and still have no control over that property ? .. if you partnered with another investor you could at least have a equity stake in the property that is free and clear ... I realize it is difficult to get started if you have never done this before .. and I applaud you on geting resourceful but .. this deal can go bad in so many ways .. divorce lawyers .. bank repossession.. and just desperate people involved.. somebody might be the nicest person in the world but put them through a divorce or a stressful situation that involves a highly emotional state of mind .. and , you can almost see them change in front of your eyes ...  find a grand slam of a flip and you can find the funding .. they are out there .. you just have to be patient and keep looking everyday .. 

just my two cents ...

I wish you the very best ...

God Speed, 

Michael Short 

P.s. @Mike Cumbie is on the right track if you decide to go forward .. I would only do it if you could put a lien on the property .. but even then it doesn't sound like there would be much meat left on the bone ... there are so many costs that people don't think about  ..plus what do you do if the owner decides to sell at a reduced price so he can sell fast ... i mean is his priority to sell his house or to make money .. what about the wife .. can she force the sale ? ..