Need advice on structuring equity partnership for flip

[Page Huyette]

I have a SFR under contract that I plan to rehab and sell within 6 months. Hard money has not worked out since I don't have the fast-flip experience to justify the risk (all of my rehabs have been much longer time frames).

I have qualified for conventional, but need additional funds for the rest of the 25% down and rehab. Not my first choice, but I am working hard to make this deal move forward, as I believe it is a good one.

I have one person who has agreed to pony up 10k towards what was originally a buy and hold rental deal we were looking at, but I'd like to approach him with this deal instead, as it could offer faster, higher returns. My thinking was to offer two options to the investor:

1. Given return on money for fixed period with points paid at closing or...
2. Profit sharing after sale. Percentage relative to amount given.

I'm going in asking for more than the original 10k that was offered for a previous deal we passed on (perhaps 15-18k) , and want to structure the proposal so it looks as attractive as possible. If he sticks with just 10k, I'll also need to put together this package so I can present to some other individuals as well.

Assuming I'm able to pull this off, I would also expect to hold the property in an LLC with the investors paying the LLC upfront, and receiving their profit through the LLC.

Should I set up an LLC just for this one?

Did I mention I have a signed contract? Would have preferred to have complete financing in place beforehand, but this was a situation where the property came on market, and I knew for sure it was a great deal, so decided to jump on it and get it under contract.