This will allow me to create a positive cash flow, get non refundable option consideration and a backend profit or…Use the magic of $1.00 to create an assignment and collect a fee.The home was free and clear and I asked him if I offered all cash what price will he give me.

I doubt you'll get it, though.In the future, you MUST draw out your partnership agreement prior to getting into bed with someone.

Should it be taken in to consideration when deciding on a location?

No payments during construction or draws to the builder.

But to try and flip this house at a point when real estate is already heading down involves taking considerable risk.

Here are the steps as I see it - please correct me:1 - Buy land2 - Get Architect to draw plans for properties, including subdividing the plots3 - Get plans approved by city/town/county???

If they're not, you're asking for problems.The other major consideration if what you'll have in the deal vs. what it's likely to sell for in that market.

Put in there whatever contingencies you want, and if your state dictates it, put monetary consideration (earnest money).

Usually the interest rate is prime or prime plus 1 or 2 (8.25-10.25%) on a short term call (1 year or so), and depending on the bank, down payment is very negotiable if there is considerable equity in the property.

I am trying to plan ahead because if and when my house gains considerable equity...I am going to do it again at another subdivision