Flipping With No Equity, Looking for Advice

[Tim Coakley]

Hi Everyone,

I am evaluating a new type of flip opportunity and I was curious if any of you have similar experience. I am looking at a partnership with a seller who owns a duplex outright in a very affluent area of South Carolina. The owner wants to transition the duplex into a single family home and then sell, but he doesn't want to finance or manage a renovation himself. The plan is for me to handle the renovation project and cost, and then take a proportionate share of the net profit after sale. After initial analysis the margins look very strong. My main concern is protecting myself, as I have no equity in the property and legally don't know what safety nets are available to make sure I get properly paid out on the back end. Has anyone done a deal like this in the past or have some guidance on how to prepare before commuting? 

I appreciate any insight you can give me!