Paperwork to protect us on an Option To Purchase

[Darryl Perkins]

Here is the setup: the distressed seller owns the property free and clear. The property is vacant. We would like to have him hold the property while we finance the repairs. Once the repairs are complete we want to split the profit minus our repairs.

Example:

ARV - $120000
- Repairs $30000
= 90000 split between seller and our business.

Holding and closing costs and all additional expenses would be split 50/50.

What paperwork would we need to put this transaction together. We want to ensure the seller does not sell the property without us and without paying us the agreed upon split once the repairs are complete.

I'm guessing we need an Option to Purchase along with some other partnership or seller agreement.