How to structure this partnership agreement?

[Jeremy Segermeister]

Hi All,

I found an off market opportunity for an HOA owned condo. The condo is sitting empty and has been gutted. Not sure what their plan is yet, but I imagine at some point they will want to sell.

Before I reach out to gauge interest, I thought it would be good if I could structure the deal as some sort of partnership. I could fund and flip the deal, and then ultimately get it sold. I’d want the option to buy the unit at specified price defined upfront, in case I decided I want to rent it.

I figured this strategy is better than me buying it myself, rehabbing and then flipping in order to save on the double transaction costs (broker fees, closing costs, time to secure the mortgage), as well as so I don’t have to pay the carrying costs during the rehab and time to sell.

What type of profit split could I ask for? Could I ask for all profits above the designated sale price? Or is there a better way to do it that makes it more enticing to the HOA?

I’m already purchasing another unit in this same community, but the rehab there is already done. Carrying costs are high here so while I’d love to do the rehab, I’m concerned that the 4+ months it will take to get it sold.