PML Terms / Debt vs Equity

[Brent Blum]

I'm working on an off-market, pre-foreclosure flip and need help structuring the financing.  Facts:

• $757k purchase price
• $752k total debt, $260k of which is past-due debt
• $925k ARV, only needs paint & carpet
• Gross profit, before the costs of financing, is expected to be $90-$100k.  I hope the flip takes 2-3 months.

I have a few people interested in the deal - now time to talk terms.  Obviously, this is all about what I can negotiate though I'm looking for a fair starting point... and also trying to be mindful that I should take care of the investor.

I'd either need $260k to buy the property subject-to (but risk the bank calling due-on-sale) or I'd need $757k to buy it outright.  I can put some skin in the game... maybe $35k. 

Should I be offering something like 3 points + 12% APR? How would I know if an equity stake made more sense... something like a 60/40 split?