Once I build some profit I plan on putting a structure down.

He's had two successful flips so far and after this third one he's looking to pay off the HELOC and roll the profits into his future flips.

Always formalize the agreement in writing to define costs, profits, and contingencies clearly.Let me know if you need help structuring the deal or exploring funding options.Best,Drago

I also do consulting from time to time to share how leverage and build a profitable holding company or fix/flip entity.

Keep in mind that landlords in expensive markets aren't making an profit (cash-flow) on rent.

In an oversimplified view, revenue of $1,000 and expenses of $1,000 offset to $0 and you made no profit...yet.

So there is no discount or profit to be made. 

Ask anyone who ever sold a business, even with great cash flow, it's not that easy to sell for a profit. 

As someone who deals and talks to real Private Lenders (small shops run by a guy who lends his own capital and doesn't use big box), they have a hard and fast business model that produces the rate of return they need to remain profitable and curb the risk on their cash.So the best product for a budding fix and flip investor is the bridge loan which includes acquisition money and construction money. 

The goal is to make money, collect profits, NOT collecting properties.