It is called Purchase and Renovate laon.I have used such loan to purchase my house which was a REO and didn't have a certificate of Occupancy so no one could get a mortgage using a standard loan and it sat on the market for a long time.The listing realtor wouldn't believe that you can get a conventional loan like that and insisted that it will be sold for all cash only.

He insisted that the price of $150k was firm.

His contribution to my investing is insistent upon a profit-share instead of a hard rate of return.

I've been looking at properties for months - come close to purchasing a couple, but have not been able to get the price I want for the cash flow I am insisting on. 

If you insist on the JV/partnership, then an attorney should draw up the paperwork so everything is transparent.

He insists that you can have a retiree run it for a few hundred dollars a week as long as I give them a space to park their RV.

@Roy Oliphant  I know its totally counter intuitive.. but most of my best deals have been when I insist that sellers retain an attorney to represent them in the transaction.. this on its face at least in our states takes any issue with unconscionable profit off the table. .. and of course a lot of what I do is development land and we can double or triple properties values in as short as 120 to 360 days with an approved plat or knowing where zoning is going to change as was the case in this one were we made a big hit.. and it could go the other way .. recession no one wants to buy dirt and we lose our ***

That said some titles companies may prefer that they don't facilitate the transfer - but I would insist that they do as it helps create a paper trail of exactly what is being conveyed.As @Wayne Brooks mentioned an estoppel letter is also highly recommended (and perhaps required depending upon state laws) - this is usually completed prior to COE, so there are no surprises on the day of closing (or later when a tenant moves out, pays the wrong amount, etc).

I'd still want to verify the vacancy rate before I did anything else.(153 units)($366K-$151689)/((12 months)($61K/month)) = 44 units (truncate the integer part)(where NOI=$366K and debt-service=$151689 [assumed 7% APR for that $1.9M])If the property is 100% vacant, then I wouldn't offer more than 30% to 40% of its market value ($2.614M [14% cap] to $3.66 [10% cap]) for an all cash offer, and I wouldn't offer more than 60% to 70% of its market value for an offer with 100% seller financing--even in that case I'd also insist on abating or at least deferring the first 6-12 months of payments.Besides the all cash offer and the offer with 100% seller financing, I'd also present at least another hybrid option (with part cash and seller carry-back) with split funding, and I'd require that the property at least appraises for a certain target figure before the second payment is made (and I'd also include a conservative end-date by which time all of my repositioning efforts would have increased the value of the property minimally to that target figure).

Short answer: Our attorney insisted we use a Warranty Deed when transferring our properties over to our LLC.