Refying for partner?

[Mariah Jeffery]

I met someone at a local real estate group meeting who has two houses that she financed through hard money loans thinking she could refi them immediately, but that was in the days of looser credit. She has more than 4 mortgages already, and no lender will talk to her. We got to talking and I mentioned that I have an 800 credit score and only one small mortgage. She proposed that I refi one or both of her properties for her to take advantage of my good credit, and put the loan in my name but title in both of our names. She thinks she can rent it out for positive cash flow. She proposed that I take all of the tax benefits and we split the positive cash flow, after a certain accumulation in a reserve fund, and then she gives me some percent (which we did not discuss) of the profit on sale. We would form an LLC and have a contract to work out the legal issues.

Does this sounds legit? How would I buy it from her so that the mortgage is in my name but title is in both of our names, yet I still purchase at < 80% LTV? The loan that she needs to pay off the hard money lender is for $325K, and the house is worth about $425K, so there is a fair amount of equity.

Thanks, MJ