Strange Flip Scenario...

[Jim Zatko]

I just bought a flip in toledo, OH. And just for grins i'm trying to wholesale it first to an investor or a family that would like the house at a discount and do the work themselves.  I got this one family that came to look at it. They can get a mortgage, but it might not go through, because there is some work to be done... there is no carpet in the house, there is base trim mission in 2 bedrooms. there are a couple doors that need replaced. So this family is going to try to get a fixer up mortgage. They proposed doing a land contract, and they do all the work themselves, and get a mortgage in a few months. I don't have a problem with them moving in and doing all the work, and if we did a land contract, I would be protected. What type of things should I be cautious about in a deal like this? I'm not sure i'm going to do it, i'm just investigating it.

[CK Hwang]

Personally, I wouldn't let them do any work on the house until they have a mortgage to buy the house clean off you. I don't know what the laws are in your state, but I sure as hell wouldn't want some court case where the buyers have some claim to the property due to the stuff they put in, should your land contract go south.