Flip strategy thoughts in Beverly Hills 90210.

[Daniel Siapin]

I'm considering a flip in 90210, will take 4-6 months, and liquidated damages after 8 months (unless out of my control):

-Purchased @ $2.1M

-Construction ~ $600k

-ARV $4.5 - 5M

Considerations:

• My compensation: $600k at close of escrow (in addition to my const funds).
• Possibly performance bonus scale, if sales price goes above $4.5M.
• Owner has done deals with my family over the past 15 years or so.
• He had a partner, but bowed out cuz he bought his dream home instead.
• I'll go on title to protect myself
• All these instructions (and more if necessary) will be recorded into escrow.

My question: are there other considerations to include in contract?  I want to cover all my bases.  My primary focus is to protect my money in this deal (FYI - telling me to not do the deal doesn't help).  I want to structure this deal bullet proof...this is a big chunk of money to protect.