How to structure this deal?

[Justin Youngblood]

Hey BP,

So I'm trying to figure out the best way to structure a deal. I have an opportunity to purchase an off market property that I plan to BRRR. This property was brought up to me by a family member. Basically they have a neighbors house who is interested in selling. My family member wants to invest $10k and I have all the other capital and the knowledge to do the deal. I would be the one on the loan and their money would be used for renovation costs. So basically I'm doing all the analyzing, managing rehab and managing once complete, negotiating etc. I want this to be beneficial for both parties and it gets a little dicey since it's family. Ideally I would do this deal by myself but since they brought it to my attention and want to invest money then they want in.

Here are the numbers. Any thoughts on how I could structure this and what it would look like? Or should I steer clear? 😂

PP: $170k

Renovation costs: $25k

ARV: $230k