Should I sacrafice a few thousand in profit and use a seller's agent?

Buy closing costs: $2000 (orig fee, plus all the other crap that shows up)Insurance: $500Inspection: $300Rehab: $7500Purchase: $92,500Total all-in cost: $102,800Holding cost for six monthsInterest: $3000Second insurance: $500Utilities: $600Taxes: $1500Total hold: $5600Total investment: $108,400Loan: $87,500Cash: $20,900SellPrice: $125,000Commissions: $7500Sell closing costs: $2500Loan payoff: $87,500Sale proceeds: $27,500Less cash investment: $20,900Net profit, pre tax: $6600That's taxable at ordinary rates.Your low money costs help vs. hard money.

Can the profits and losses be distributed somehow without a partnership.

I do not like to buy properties that need more money on rehab than I anticipate to profit.

Thanks Jon.Is there anyway to go about it so the buyer doesn't know that I'm actually making a profit?

Personally, I think it's counter productive and against the concept of free enterprise.

Your contractor is going to want to walk away with 5% profit minimum on a commercial project, or 8 -10% profit on a residential project.

I take that to mean he is looking for more upside than just 10% interest.My realtor (c) said that if the investor put up 100% of purchase and rehab costs, that we should split profits (cash flow and equity upon sale) 40% to him and 60% to me.How does that compare to the other partnership agreements out there?

I find doing an Equity Split (like a JV Addendum on the Sandwich LO) where the Seller PARTICIPATES IN THE NEGATIVE CASH FLOW and receives some benefit down the road.Equity Splits are valuable in expensive markets like SF, LA, NY, etc.Language might be:Ask the Seller to write down what they think would work.That way the seller gets exactly what they want, I sign up the deal, and then I clean it up later (checking with my attorney if needed).An Example:"Landlord to receive 20% of the amount of Net Profit.

I'd like to go via mls, but the commission will just eat away profit.