Putting the deal together?

[Vickiel Woodard]

Hello BP, I'M looking for advice on how to structure a deal. I'm a buy/hold investor and rehabber, and I just "hand shook" on a deal to restore my brother's property and help him rebuild his retirement income/legacy to his children. He has three distressed properties (owned free and clear) in a cashflow area. One of them is a possible teardown the other two are rehab and rent with about $12000 of work each. He has no money and little management skill and allowed the properties to go to the state land commisioner's and filed bankruptcy before I got involved. (Pride) The properties include a four bed/2 bath, a three bed/1.5 bath and a 2bed/1 bath. I agreed to help him by offering this deal: 1. He redeems the properties and I pay all back taxes(he has no money) 2. He quit claims the properties to me in my personal name for seven years ( not my company's due to quicker financing). 3. I own the properties to rehab and rent and retain all rents for the first three years. 4. For the next four years I pay him 30% of the rent per month per property which amounts to $200-250 per property in our area. 5. At the end of the seventh year if my rehab loan is paid , I will deed the properties back to him and set him up with property management in place. If not, the deal will extend for an additional 2-3 years. He and his wife have accepted the deal verbally and want me to write the contract. I have never done this kind of deal before and I am nervous. My brother trusts me and I don't want to do anything that could backfire or cause us problems later. My questions are: After the title work is done, what other things should I consider in writing this deal or before writing the contract? I am confident that I can get financing for the rehab. But, If the third house is a tear down, what should I do? He can not pay for it to be torn down and the city is pressuring him to do something. Note: loaning him money without leaverage (ownership) is a no-no. Please advise.