A deal fell through that I was working on because the person (a friend) arranging the investors, me and another gentleman, wanted to have equal equity with us and had no money to put up.

Say it was a 2 bed unit and a family of 4 wanted to move in with 1 boy and 1 girl child, you cannot say no based upon the kids having to share a room, again that is under the familial status umbrella and up to the parents how they will deal with the sleeping arrangements.

He doesn't have the cash to make this arrangement initially and he is planning to use his net income proceeds to purchase the additional equity.

What you seem to be considering is a short term purchase/financing arrangement (lease-option) for long term asset needs (buy-hold) which violates the first golden rule of financing assets, you need a long term financing arrangement to acquire for long term assets.Another point, with rates so low, they will be higher in 3-5 years.

This seems to be working out fairly well since the job provides some amount of steady income, but it's also a very flexible type of arrangement.

I'm scared that if I don't properly document the living arrangement with this 'stranger' I might run into problems.

I'm guessing it's finding a motivated seller, arranging a lease option, and then selling that lease option to a tenant-buyer who then does a lease option - and you make money for bringing them together.

I give applicants a 4 hour window after notifying them they have been accepted to respond and either get me the deposit or make arrangements to get it to me before the end of that day before I will give the house to someone else.I also require they sign an agreement that their deposit is a holding deposit until the lease is signed, and they forfeit 3.33% of the deposit per day the house is held if they do not sign the lease and take residency.

If you own it with your siblings it is best if you decide how expenses are split and put your arrangement in writing.

HAS PATIO AND COVERED PARKING.NEAR STERLING AND WINNER ROADMONTHLY INCOME OF $2000ASKING 110,000 Make offer.Possible financing.What I get from this is someone with a possible cash problem as the property has only been partially remodeled.Would a reply back be along the lines of a sweat equity arrangement?