Basically, a FLIP funded with income-producing RE passes on net income (rents) initially and then, at a point that you specify when you create the trust, the trust will 'flip' to paying you a flat rate of income based on the trust's total value.

If you value your time/energy/stress level for a 6 month process (max 180 days) at more than $10k, then maybe it isn't worth it to you.

To build trust I would like to VOLUNTEER my time and services to someone who could use the help.

Bottom line if the trust isn't there even if you know the person then you need it in black and white.

I've read a couple of post about investors not trusting wholesalers because of the wholesalers lack of ability to calculate rehab cost.  

We are in the process of determining all the forms that need to be filed at the CA and Federal level in order to "hire" herself as the sole employee of the company. 

Obviously if you can make the deal even better with a certain type of loan you would take advantage of it.Jeff Wagner and Phillip Morris with One Trust Home Loans are excellent resources here in Houston.  

My question is, do I let him complete the work up to the level he has been paid and then fire him?

Ruel, you may be able to find a contractor that will walk the property and give you an estimate, but it may be tough, sounds like the Realtor gave you some idea of the rehab cost and depending on how much you trust him, sounds like he may have told you a number that may get you the house. so 205K plus say 65K for rehab puts you at 270K. you have about 10K in purchase closing costs about 22K in closing at sell, if your intention is to flip the property ( if sold for 320K) so now you are in for 302K plus holding costs, maybe another 10K, so 312K. you could make 8K in profit, if you sell at 320K. i am guessing this is a foreclosure being that you said that not having a home inspection would make a difference with the bank in selling it, because most lending banks would want a home inspection. you can have an inspection for your own piece of mind but still waive the inspection.

Definitely score one point for the "don't trust Zillow" camp. :)