Custom Listing Contract for homes that need work

[Rich Hupper]

Hello fellow agents!

I wanted to see if anyone else does this with their willing seller clients, and what the mechanics of the contract would involve.

Instead of the seller repairing and staging the home the way they want to ( despite my suggestions ) and their money. What if I can get the seller to let me repair and stage it the way I want to, minimizing buyer redflags and inspection issues. 

This would help seller especially if they do not have the time, money or know how to get the home in the proper market ready condition it needs to be to get top dollar.

Obviously I would need to gauge exactly what my ideas would cost and what the return would be on the sale.

I am thinking of something  along the lines to what the property brothers do on TV, but where I fund the money for the rehab and staging, and get it back at closing.

What type of attorney would I need to speak to regarding this type of contract?

Thank you

[Bill Gulley]

@Rich Hupper your gain is based on your % ownership, your basis of entry, but yeah, $1.00 might do you in........you'd not go in like that, use a note to buy the interest, your cut is in the TIC Agreement, while you do buy in at a discounted value (because a TIC interest is less valuable than the whole as you only have a piece, not the whole pie) you can be entitled to the added value of the other owner's interest by agreement.

If you have cash available, just buy it and fix it. I'd never have a 4 month balloon, never, one year at the earliest and payoff at the sale. 4 months puts you in a corner !  :)