What would be a fair scenario to present to our friend that would benefit both of us?

I feel like by his terms I get no benefit for agreeing to the delayed payment but if things go to crap then he walks away and I don't sell the rest of the land. 

We understand that most fix and flips are cash purchases or shorter financing such as hard/private lending, but are having trouble trying to understand if other investors ever use conventional loans to finance a fix and flip.It would be great for us if you guys and gals can shed some insight on if conventional loans are really ever used for fix and flips and if so what are the benefits and drawbacks vs. hard/private lending.Thanks for all the help!

So far I have 1099, Advertising & Marketing, bank charges & Fees, Capital Expenses (for remodels) Car & Truck, Contractor, depreciation, donations, Employee benefits, insurance, interest paid, inventory assets, job supplies, legal &professional services, loans/points, meals & entertainment, office expenses, Rent & lease, repairs & maintenance, salaries & wages, taxes & licenses travel, utilities.

These are just a couple of benefits to dealing with pre-foreclosed properties and their owners. 

What’s unique is that the basement only has an exterior entrance so if I added rooms to the basement, they would essentially need to walk outside to have access to kitchen/bath/laundry.

@Joe G.I am not in anyway, shape or form benefit financially from this company, but when I was looking for a lender for my rental, I went back to the lender for my primary residence (Caliber Home Loans). 

The claim to collect, if necessary, would be based in equity... the vendor provided a service that benefited you, the property owner.Check your agreement with the seller.

What tax benefits??? 

Partnerships between a 401(k) and other investors, or plan-held entities that may be used for an activity with UBIT exposure may benefit from alternative elections.