Once you have a contract drawn up, the settlement company performs fairly generic work to close on behalf of both parties... more importantly, what terms has he suggested for seller financing and how motivated is he to "offload" this property?

However, I occasionally buy Non-Performing and Performing Real Estate Notes.

In an option, you can not have requirements for performance by the optionee either, otherwise it can just be a purchase contract and that could effect the option price paid.

If you're trying the wage to performance (as in making a good profit on the flip) then it needs to balanced such that he makes good money when he does well, because he could make little to no money when he doesn't.

Do you want to force the seller to perform?  

Here are a few ideas to kick around:Have borrower get a co-signer, or more specifically, a co-guarantor with property with equity that gets added as additional collateral.Sweeten deal by getting additional collateral like auto, truck, inheritance, anything.If you are concerned about her performance, negotiate a contract for option.

Your performance thus far is very impressive.

I believe you should charge yourself 10%, if it's norm in your area because you will have to work and spend time to perform it and time is money. 

More specifically, I:1) Got the deal more directly than my partner for ~$5-15K less2) Negotiated and performed all inspections ahead of other prospective buyers3) Talked another investor out of the deal at the closing table to get the contract for no more than we originally planned (after over an hour.. one of the stranger circumstances I've experienced in a while, but got a smile, business card, and potential future partner in the process!

You will be taking over someone else's mortgage and your performance on that is tied to that individual seller's credit.