Besides its a lot better seeing a surplus profit over "expenses" than a cut from "profits"

@Lance Luvaul since you are borrowing from your dad I would suggest you give him either what @Chris Mason suggested or 50% of the profits, whichever is higher.

Maybe they want out of the business, maybe they inherited the property, maybe they want to buy a larger property and need the money.  

Here in Houston gurus, new investors, old investors, established investors all talk about the 70% rule and how in order to get a profit the "numbers" is what matters.

We had originally thought that Bob could lien the property for the construction costs, but, the profit will be directly related to what they end up selling the property for, which is usually an unknown until the final hour.  

If it is just the business and not buying a building or the land beneath it then it is not generally a real estate licensed activity.You need to check for each state what is or is not required.You could go on a site like Rocket Lawyer etc. and for a nominal fee ask the question.In commercial real estate transactions you can generally have consulting and other fees on the HUD-1 as RESPA does not typically apply.To look for more businesses you could look at bizbuysell.com  Sellers typically want 3 times gross profit earnings so if 100k a year after expenses they want 300,000.

Can you imagine your monthly property tax liability being larger than your mortgage?

The problem you may encounter is this will eat into your profits given the small scale.I know what mean about the challenge of going after a "turnaround project" that is remote...  

But They seemed to specialize in providing funding through private investors which states they will take 1.65% of every profit on each investment.

I moved very recently from Connecticut, where I had invested in duplex and single family properties and am looking to leverage the economies of scale that generally come with the larger asset class.Looking forward to working with all of you!