Fix and Flip funding strategy

[Travis Odette]

Looking for some help with a proposal that was brought to me.

A homeowner is about to lose the house, just got sent documents to be placed in deferment. The house needs work, had water in the basement and most of the mechanical will need to be replaced, along with drywall and flooring in the basement, plus odds and ends in the rest of the house, not a major remodel. So it would be hard to get what the homeowner owes to sell it fast.

The homeowner has proposed that I pay the mortgage payments, to help save credit score, while I fix the home. When it is sold, I pay off the mortgage (would have to in order to clear title anyhow) then I keep all the money after mortgage is paid off from the sale.

How do I structure this to protect myself and the investment I put into repairs and “holding” costs?

First thoughts are to be added as a secured interest on the title, coupled with a notarized agreement. Another thought is maybe attempt to place a contractors lien on the property for the estimated repair/holding costs?

Any input would be much appreciated.

[Kerry Noble Jr]

Sounds like youre trying to set up Subject to?