These transactions are sometimes referred to as "parking arrangements" and may also be structured in ways which are outside the safe harbor.Proper Purpose - Both the relinquished property and replacement property must be held for productive use in a trade or business or for investment.

If there are specific things I can do or a certain way I can arrange the deal so that I am protected I would love to hear about it.

Yes you will have to arrange the furniture and do the staging yourself at that point, but for us that is half the fun.Hope this helps, good luck with your sale.

Does this sound like a typical property management arrangement?

Why would an investor settle for a percentage (or other fractional financial arrangement) if they have the money, instead of just doing the deal themselves?

You may ask, why not do private lending--I would rather spread the risk of the deal with another person and not have to pay interest in a borrowed downpayment.What % equity should I keep for arranging the deal?

If you buy from some owner and then flip it for a significant profit, the issue of your greater knowledge comes into play and, depending on your relationship, flipping a contract can be considered a net listing issue, having a seller agree to accept a certain price with you taking all the profits above that price.Next, is the broker liability, if you are out there doing flim-flam investor strategies the risk of deals going south goes up, if you tick off some owner in doing a screwy deal your broker can be held liable.Barring that and other smaller issues, like marketing, co-broker arrangements, commission credits on deals with owing the broker a % of the credit being ironed out, no broker can really keep you from owning real estate.

We do not have any legal docs explaining this arrangement, everything is in my name except for our bank account, is that okay?

Borrowers are more accountable.In some entities, a member or stockholder may have an equity position attached to assets, rights to employee contributions, pay, benefits or internal arrangements that may limit the ability to liquidate assets or attach accounts, such arrangements are generally provided among those having a major or significant interest.

If you are still looking at this can you contact the current owner and verify with them or arrange a viewing?