It essentially includes having a buyer for a specific property BEFORE entering  in a contract with a seller.  

The main differences (besides rates/underwriting guidelines) is what you can include in your renovation costs.

You must must disclose to the seller everything including that you are selling it to someone else and how much money you are selling it to that end buyer.

The client will be solely responsible for capital gains taxes, including depreciation recapture, regardless of the agreement to share proceeds.

Quote from @Yaroslav Shtogun: Hello Community,I am seeking advice on the following real estate situation:I’m in the process of purchasing a double lot property (100x100 in an RS-50 zone) that includes a 1,200 sqft wood-frame house and a 640 sqft detached garage.

You will need probably 20% of total cost (Not including financing costs. 80% LTC) as the down payment.

. - PM provides a cash based accounting report every month, for every unit under management, that clearly labels all rent, all expenses, including management fees, and the net directly ties to the amount of money deposited into my bank account.- PM is a licensed handyman, or has them on staff, and takes care of most unit turn work at a reasonable rate. - PM has no breakup/termination fee- PM does not take project management fees, except on large or complicated CapEx projects exceeding $5,000. 

After putting about $50k into the property,  I’m just about $25k from meeting my completion goal that includes stucco, drywall, and siding.

Include in your model rates going up by 2%, and just make sure you enough cash to cover. 

Just say no.I would almost never do this trade unless all my downside, including potential unknowns, were completely compensated for.