Accounting for non-owner investment

[Kevin Gardenhire]

Hi Guys,

New here to the forum. Hoping to learn a few new things. I have a company that manages real estate and also flips homes. I have a client that wants me to take control of their real estate investing. Basically they want me to cover every aspect of a flip for them from start to finish. My question is how do I account for a client giving me X amount of dollars to use to buy a home, renovate home and then sell the home. This money would not be accounted for as income but would essentially be in a spending account controlled by my company and then a percentage of any profits made would be distributed back to them. Has anyone done anything like this that might have some tips for me as far as how to best structure this to be in compliance for taxes and such?

Appreciate any help anyone can offer.