Typically you would retain 10% in an escrow account from the investor and when the investment is identified you 'Call' on the capital in full balance to be delivered.

.- Get financial statements that would illustrate proper net worth and/or income.- Create a checklist of questions that would help qualify the investor and have them sign the form.- Have the investor's CPA or lawyer write a letter attesting to the fact that they are accredited.Obviously the tax returns are the best route to go.

All lenders tell them the same thing, that they need to have a reliable source of income to prove they can repay the balance of the mortgage if things go sour.

A 75/25 split... if profits are 40,000 you get 30,000 your partner gets 10,000.Compare to 20% of 40,000 = 8,000, leaving a balance of 32,000 to split 50/50 or 16,000 for your partner and 16,000+8,000=24,000.. which would you rather have. 24 or 30?

Please advice if it is viable.There is a balance of $120k on the mortgage.

However, you may look at the small balance SBA program.

If it is written properly it will be in there and you will have your answer.

Clearly, there should be value in adding this feature, and doing so properly and with a permit, so that it's reflected in the title, and i'm trying to gage how much would be acceptable to spend on central air.I've been quoted between $7200 and $16K for a 3Ton complete system, and while i don't always go with the lowest bid, i'm tempted to do so this time since i treat air as a "commodity" and not "finishings" and am at the tail and of a renovation.

Better get down on one knee and do it the proper way!

I agree with @John Jackson , @Bill Walston is your man.As I do mostly Lease Option Assignments and Sub2 acquisitions, its all ordinary income.Write off as much as you can with good tax advice and the proper entity structure.