So, the investor was able to purchase the property for the current mortgage balance of $150,000 with the agreement that after the rehab the profits would be shared with the homeowner.
Typically, these profits are shared 1/3 to seller, 2/3 to the investor since the investor is fronting all the cash and taking on the risks of the rehab. This is not always an ideal scenario for investors because of the risks involved in rehabs, so a lot will depend on the area, condition and price of the house.
An equity partner opportunity can take on many different forms even if you have little or no equity. It’s always best to share with us the details of your situation so that we can put our minds to work and figure out the best ways to help you.