I did some research and it seems the best way to partner on the deal is to take title as tenants in common and draw up a joint venture agreement spelling out duties/obligations, profit split, and exits.

Pending a home inspection of course.Anything last minute hints as I draw closer to getting this thing on paper?

Though prices in southern California are extremely high in most areas, the upside is that we have a great, broad based economy, high median household incomes (meaning people can afford the rents) perfect year round weather that draws people from around the world when their area is having extreme cold, plus all the amusements, sports, recreation, etc. imaginable!

After its done (or a chunk is done if they're doing multiple draws) they inspect the work and give you some of the rehab money.

In addition, you also have to have some working capital to get the work done before you request any draws to repay yourself, unless you get contractors that are willing to work up front and be paid 5-10 days after work is completed.I would definitely use hard money, but it does require more up front and working capital than an equity partner.

Investing out of state may not be a bad call, but there are definitely draw backs (you can read about the pros and cons in other forum posts).3.

Youd be fine charging something that gave you a 14 - 16% rate, but of course you want an attorney to draw up the paperwork and advise.

Prior to any subcontractor starting work on your jobsite discuss payment methods percentage of payments (draws) and release of liens.

You can bet if he put $40K down, he is not stupid and might have a lawyer draw up the contract.

Scratch each other's back to get everyone what they want: they can have their equity, and you can lower your cost of funds, w/ more profit on your ongoing deals, and drawing more loans for you from those who want the equity slice.