First, what contract you need will depend on what you are doing, precisely.  

You usually have to be licensed and you'll need to register a private placement with an exemption such as a 506 (d).

Maybe it doesn't meet a precise legal definition, and maybe a good lawyer could get the investor off the hook, but its certainly immoral.We've read stories here about squatters moving into vacant houses that are in foreclosure.

Trying to find it on trulia but it doesn't let me get it precisely to the address.

That is precisely what I'm doing on other deals.

However, the precise language of your contract (specifically the option and inspection terms) would control the status of your transaction.

.$140,000 does seem like a lot of money to pay to the IRS. you may want to get a second opinion.unfortunately - it may be one of those issues that the person would have to see your return to give you a more precise answer.Adding the partnership does add another level of complexity.

To look good it needs to be a precision job.

One thing you will definitely want to invest in is a blade for cutting non-ferrous metal (aluminum) in your miter saw to cut the crossbar on top that the door will hang on precisely.

Here're a few more posts to help you make a decision:https://www.biggerpockets.com/member-blogs/10850/87614-interpreting-the-private-placement-memorandum-ppmhttps://www.biggerpockets.com/member-blogs/10850/86626-the-pros-and-cons-of-investing-via-real-estate-syndicationhttps://www.biggerpockets.com/member-blogs/10850/79257-deciphering-syndication-investment-terminology