I don't think there is any money making potential involved in this.

I'm sure many people have done this, but I'll bet that most of them don't fully understand why they are doing it, and many of them are losing money without realizing it.What's USUALLY in the back of their mind when they do this, but is often subconcious, is that they are COUNTING on the house to appreciate and/or rental rates to go up.

there's a balancing act involved.

Not only are you dealing with normal rehab issues for a major project, but then you are also betting on the come.

Here at BiggerPockets, we require people get involved in the discussion of the site before entering the dealmaking thread.

If you need to get your feet wet and want to get involved in a couple deals, drop me a note.

You might negotiate with him to split it between the two of you, so you both don't lose out on it.I personally have the buyer write me the check directly unless a realtor is involved (agents normally won't allow it).

Tim, While there are GURUs out there that seem to have figured out how to navigate these waters (Alan Cowgell SP) seem to be one of them... the reality is that once you have someone lend you money you are entering some special realm involving securities.

However I bet money most of them are just looking for a cheap house and aren't investors.I dunno.

Make sure that you are fully prepared for the work that is involved in a project that extensive.