Owner Finance/Partnership advice

[Bob Woelfel]

I'm looking for advice on how to structure a flip deal. I just met with a guy who owns a house with his dad. His dad is sick and the son is planning for what to do with the house when his dad eventually passes. There is no mortgage on the house. The property has a great layout, curb appeal and the bones are in great shape. Would make a great flip. I"m an agent and an investor so we talked through some numbers and a bunch of different scenarios. He asked if I'd be interested in partnering on the deal. The son is a roofing contractor and this house needs a new roof and decking. I'm trying to figure out how I could structure a deal where we both win because I'm not sure me buying it outright from him and flipping it is going to work from a numbers perspective. How could I structure this where we fix it, I list it and also get a % of the profit at the end? He comes away with more money then he would probably get and I win as well. Initially I was thinking that I would provide the rehab funds and manage the rehab like I normally would, which would put me in 1st lien position. This would also allow us to not have the property change ownership and we would be able to sell right away to an FHA buyer while avoiding the anti-flipping rule. Thoughts?? What am I not thinking about? Thanks.