TH Fix and Flip analysis in Gaithersburg, MD

[Fabio Secaira]

Hi everyone,

I'm in the initial stages of analyzing a deal (my first) that I'd like to move on soon (if the numbers make sense). It's a short-sale townhouse listed for $210k, and comps are at $295k. It needs about $30k of work so I'd estimate that the maximum purchase price would be around $175k-$180k (ARV x 70% - repair cost). Considering purchase and sales closing costs would be around $32k, a $295k sales price would leave a profit of about $53k, minus utilities.

My question for those who have been-there-done-that is two-fold:

1. Do banks usually go down that low from asking price on short sales? I'd say it makes a whole lot of sense for them to do so and avoid taking over the property in foreclosure. 

2. Ideally I'd partner with a cash investor on this and split the profits 50/50. Is this considered a reasonable arrangement? I approached someone with the preliminary proposal and he suggested a 70/30 split which he described as a finder's fee and compensation for dealing with contractors. Since I found the deal, and I'd be in charge of the entire process, including purchase, coordinating rehab and sale (he's out of town), this doesn't seem fair, but maybe it's a typical expectation. 

Any insight and suggestions will be greatly appreciated. Thanks!
Fabio