Getting Creative w/ Financing

[Mike Field]

I had a friend of a friend recently reach out to me regarding a property they own they would like me to either list for them or purchase myself for a flip.  Running the numbers I feel confident as a flip I can make money utilizing some creative seller financing that we have discussed but I am looking for some real world feedback.

My HML is fairly expensive, between interests, closing costs, and additional fees it will eat up to much of the profit to make the flip worthwhile. The owner is willing to carry the property while I do the repairs, when we sell he would then collect his $250k( the original value we determined I would pay) plus a small percentage of profit (yet to be determined). I would then put up the cost of the repairs and take the remaining profit for the next investment.

Has anyone done a deal like this in the past? If he is willing to carry the house completely no payments until we sell etc. what is the best way to protect everyones investments to make sure everyone is set? I have a call into my attorney as well, but looking for any insight the gurus of BP may have.

My other question would be if anyone has ever done a deal like this, what is a fair percentage of profit to pay out to the current owner.

We plan to begin work ASAP and have the property on the market by April.  The current owner has rented it at a loss for ten years and really is not interested in getting it into any shape that would make it worth selling for him.  This is not my first rehab so I understand the risks, hold ups, and hidden costs etc.  I am looking more for guidance around how we could structure the deal and what percentage of profit is considered "normal" or "fair".  

Any input would be great, thank you