Flipping a house that we don't own...how would this work?

[Sharetha H.]

Hi Everyone... Working with a partner on our first flip. We don't own the house (a friend does), but we are putting all the money into the renovation (the friend is carrying the mortgage on the property). My partner and I have come to an agreement with the friend on a purchase price (that they would receive when the renovated house is sold), and we will have an agreement drawn up by an attorney outlining the terms. When it comes time to close on the flip sale, how would we show the net profit coming to us on the closing statement? Has anyone ever done a transaction like this?