How to protect my investment in a partnership for a rehab

[Kathy Merton]

I find myself in a position with a property that I never intended to own, (had to execute a deed in lieu of foreclosure from previous owner). The property needs a large amount of rehab to be inhabitable. The previous owner wants to partner, says they have the funds to complete the rehab but not to purchase the building from me and finish the rehab. I have structured a deal were I provide access to the building but nothing else. The other party provides all the rehab funds and oversight. At completion the property will be rented out and sold. The other party says they have a buyer already. Proceeds will be split. It seems because I own the building that I will be protected from this deal going bad but I'm not sure. Can anyone see where I may be leaving myself exposed to loss or fraud? How can I better protect my interests and successfully rehab and sell this building that I had no intention of owning in the first place?