I feel as though if you decide to take the investment, that it should be treated seperately from his contracting work on the property, partly for documentation purposes, but also so everyone has clear expectations to responsibilities.I agree that having a stake in the deal would most likely motivate him to pay extra care to work quality and deadlines, but im not sure if you will be able to necessarily get a better deal on repairs from conflict of interest; as an investor he makes more from cheaper rehab, but as a contractor that's his work income.OTOH, if this makes him more motivated to come up with creative/alternative methods for cutting costs, that would help both sides of his profit margins.Is this something you need to make the deal, or just exploring for possible benefits?

It also depends on whether you're treating it as an investment that you'll occupy for a year or treating it as your residence.

I was really getting tired of people treating the end of the grace period as the due date anyway.

Since you are not sure as to the amount of work/effort/value you'll each be bringing to the project, but you think they might be comparable, I'd say treat that as the same between the two of you for the first flip and you can adjust it on future flips if necessary.

You have to have a thick skin, and always treat them kindly.

I'd spend the bulk of your time there trying to get to know the promoters and how their existing investors have been treated in past investments.

I personally balance being a traditional agent (30% of my time) with being a scout for deals on behalf of my investor clients (60%) through my lead generation machine (www.webuyhousessea.com) and the final 10% is allocated to my own personal investments which may or may not be found through my aforementioned 90%.All "agent" work is treated as personal income.

Lots of poorly treated and agitated dogs everywhere.

I meant what you reworded (better than I) which is why I attempted to include the idea of the new occupant being treated like a occupant when I said "Buyer/Occupant".

If it was 24 months of the last 60 months before sale, then they can treat it as a primary residence and exclude the gain up to 500k.