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. 

@Matt Motil gave an excellent analogy about the crabs.In retrospect, the fact of the matter is that it's good for you to be able to share those experiences with this community which embraces your REI mindset.

I've found this to be an excellent selling tool.  

The members, forums, blogs and podcasts provide a wealth of information and excellent networking opportunities. 

I'm going to speak with the seller further to seek a win-win deal.

I also filter them by means of asking a few questions: 1 - Will they submit all offers, regardless of whether or not they (the agent) thinks it will win?  

Someone wins an HOA sale only to discover there is a senior lienholder who's owed more than the property is worth.  

As always protect the seller / the customer, above all the deal must be win-win.But even making a business out of taking control of RE and assigning, even this is permissable in any volume you'd like in the restrictive Ohio per the Jeff Watson interview of OH RE board members, as long as you don't do certain things and take legitimate control and risk via P&S contract with typical earnest money, (what ever, but more than $10 or $100).