They gave me $30k each and I gave them 20% of the profits in perpetuity.

They quaint until demographics shift and people want to own homes again and sell them off slowly with large profits or buy and hold for long term?

Now, this is a part-time job, so I have to chance of getting a traditional loan, but I have a few people in my department that are willing to invest with me on deals if I show them that it is a good one.Here is my question, is there a way that I can take their hard cash and giving them a sort of IOU with a predetermined share of the profits of the sale or cash flow from the purchased property?

Thats why I'm transitioning to fix and flip, where margins have shrunk but still there are ways to make a buck...Continue reading and listening to podcasts and you will see that there are plenty of ways to start in real estate and not all require big down payments.Good luck!

He approached me about partnering up to sell the home for profit.

I own two single family homes right next to each other in a small town outside of Ottawa, Canada.  One home is 4 bed 2 bath - the other is 3 bed 2 bath.  They each sit on about an acre of land in a small family subdiv...

Too often the margins are just too thin for most people.

You touched on this a little with your appraiser story, but another thing that can make your deal more or less profitable and, maybe at some point make or break, is the terms of your loan. 

Even if we have to keep the existing floor plan I think we could still charge $1400-1600 in rent for the area based on comps, which would still make this a profitable deal.Here is the unique aspect to this deal that I could use some help with.

My original plan was to take the profit and try to go to Indianapolis to purchase a couple of properties cash.