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Updated almost 5 years ago,
Credit Partnership for a Flip Deal
What's up BP. An investor reached out to me to become a credit partner in a flip deal. They are using hard money to purchase a property for a rehab. They have the cash reserves, putting the down payment with the lender, but would like to leverage my credit profile to get 90% LTV. In exchange they are offering 25% of the net profit after the flip. If they can't sell the property in time, the game plan is to go a cash out refi. Pay off the lender, pay me the 25% then they will keep the property as a buy and hold. I've also contacted my lawyer for a contract. This will be my first major real estate transaction. Just looking for any advice on what I should look out.
Thanks.