This property is condemned & is scheduled to be demolished .Incidence 2) After the auction, I went to the tax commissioner office & paid for the winning.

Hey @Claudio GoliaGetting in touch with a real estate professional, as you have, it an excellent way to get started!

Kind of like when you win $1MM in the lottery, its usually $1MM over 20 years, or $650k or so in a lump sum. 

The investor is my uncle so I'm sure we can work out something that is a win for everyone involved.

If let's say after a few months or so, after the transaction has closed, then suddenly, the seller had realized that he/she made a wrong decision in selling that home for that price, even though he/she knew it was below market value, and if they try to collect money or the difference by suing the investor/realtor --they may win the case because, she then told me that, the law will be more favorable to the one that didn't know any better, which in this case, it's the seller. 

Tim:You bring up an excellent point about MI, and it's a valid one.  

I would recommend everyone to get some sort of system in place to clearly see your finances breakdown, whether it be excel, an app, maybe even good ol' fashioned pen and paper! 

However, Person 2 has bad/no credit, and Person 1 and his wife have excellent credit and bank financing will be obtained solely based on Person 1 and wife's credit.Given the situation, does it make sense for a straight up 50/50 equity and profit splitting?  

Either way it's a win win for all, most homeowners wait to long and reduce there options by waiting.  

 :)(If you're using built-in time and date functions in Excel or equal, both of these scenarios should probably work correctly for you.