I might try and structure something like this.* "I would agree to buy this property for 50k provided that it appraise for at least 55k and IF it passes an inspection with no material faults."

A thorough response as always.I have my own take, and as any attorney will say, this is not legal advice...For the asset protection purposes you need both (1) insurance and (2) properly structured company for litigation protection, an LLC/LP/etc.Insurance protects your from nuisance that occur on the property; i.e. slip and fallThe company structure protects your assets from litigation liability; i.e. gross negligence (health and safety, alleged known hazards, fraud in the sale of the property) as well as someone getting to your assets by suing you personally (e.x. you got into a car wreck that exceeded the coverage of your policy, now they can go after your assets)The due on sale clause is often a concern, but me and my colleagues view it as a very low risk for a number of reasons.

If I choose this structure, how does a Founder compensates the Qualifying Broker for this, salaried W2 or revenue split?

Attorney fees are expensive to properly set up the structures, and a poor structure is barely better than no structure at all.

House was built in 60s seem to be structurally sound but needs lots of cosmetic/updates.  

Any suggestions on the nuts and bolts (contracts, how you structured deal, what % rate of return you offered) and how you managed the relationship to help the investor feel comfortable?

single family homes are less desirable to rent than an entire apartment complex as you have way more to maintain, versus one structure under one or 2 roofs.  

UNITED STATES TREASURY BEGINS CRACK DOWN ON MONEY LAUNDERING THROUGH HIGH END RESIDENTIAL REAL ESTATE In an effort to combat money laundering in the real estate sector, The Financial Crimes Enforcement Network (FinCen), a bureau of The United States Treasury Department, has issued Geographic Targeting Orders (GTO) that will temporarily require title insurance companies to identify the names and social security numbers of the natural persons behind LLC's and other opaque structures that are used as shell companies to purchase high end residential real estate.Reporting will be required on "All Cash" purchases of residential properties that exceed $3,000,000 in Manhattan and $1,000,000 in Miami-Dade County.

I'd like to set up my structure with my long term goal in check so I don't complicate things in the long run.How are you guys doing it?

I haven't actually spoken with him about how much interest he is looking for or how he would like to see it structured.