Seller writing you a check after closing

[Bridget Huebner]

I remember hearing about this strategy on either the Bigger Pockets Podcast or the Real Estate Rookie, but I can't find the episode for the life of me.

The guest on this episode had used a creative financing strategy by doing the following (I'm going to make up the numbers for this example, so they may not be totally accurate)

The seller wanted to sell his beat up house for 100k. It was off market

The house flipper paid for the renovation of this man's home while it was still in the seller's name. The whole renovation cost 50k.

They then sold this house for let's say 200k. They had an agreement for what would be done with this money after the sale. So the man selling his house got the 100k he initially asked for, and the flipper got everything that was left. He got his 50k back AND made another 50 on top of it.

Is there a name for this strategy? Is this a strategy that can be used for fixing up and purchasing a rental property?

Does anyone know which episode I am describing?