I keep hearing cut profits 50/50.

If you purchase less than you sell the irs says that the difference is profit first.   

@Mark SeutterA self directed IRA is a way many investors purchase real estate, however the profits go back into your retirement account and may only be take out as a distribution.

My goal is to be able to buy single as well as multifamily homes and live off of the rent (long term goal) Ive also met with a broker who works with short sales, he takes on about 10 "projects" a year presents you with the short sales in area of interests (mainly Long Island) along with high and low comps, he asks for a percentage (unknown, at our discretion it appears) of the  profit after the property is sold, he typically works with investors who buy and flip. 

If your paying $80k for a property that has an ARV of $110k, there is not much meat left on the bone to borrow against or for profit as a flip.

She declined and explained that her client is an investor too and would flip this one if it were profitable.

Like the old adage "what we lose in profit, we'll make up in volume" makes no practical sense. 

@Nathan Walden Last time I checked Riverside was top 5 or 6 nationally for total profits cash flow + equity since 2000.

It is rare people offer you a split of total profit unless you put your own money on the table. 

Depending on his involvement other than providing the cash you need and it will probably effect his profit split to do the deal.