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The disclosure must include:1. that this is an equitable interest2. if wholesalers does not have legal title and may NOT be able to transfer title

Thus, they take extreme risks and look for corresponding discounts.Additionally, after the first position lender accounts for default interest, penalties, legal fees, foreclosure fees, accounting fees, and everything else, the equity in your combined <65% ARV loan can easily erode to zero.

@Dean HalpinI’m not an attorney and can’t offer legal advice, but this situation seems to have the potential for a lawsuit for unpaid wages.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Honestly, I would not sign any lease until you positively close and legally own the property.

This is highly lender-specific; there are no universal guidelines for DSCR loans like there are for GSE/Govvy loans.

Hi Krista, Yes you need a broker's license to legally manage property that you do not own in CO.

Perhaps if your partner was a general contractor or handyman type there may be some merit there to reduce costs / increase profitability.If your partner enjoys deal sourcing, a better move might be for him to become an agent - so he could legally collect commissions from finding deals and managing properties for multiple people. 

Check out Every Landlord's Legal Guide by NOLO.