Hello all, new to the forum. I posted an introduction in a previous post...
Short story: my wife and I were walking through the Park Hill neighborhood in Denver, CO and noticed a 2 story 80-100 year old house that looked vacant. We inspected through the windows and noticed there was construction that had been halted at some point, probably 2-5 years ago. There is a county PERMIT on the window from 2010 - so by the looks of it this poor old house hasn't been touched for some time.
The idea we had was what if you were able to contact the current owner and work up a deal to invest to fix up the place, have them sell it, then split the profits. This would require an appraisal before the remodel to subtract from the selling price to decide profit. Obviously, this would require a carefully placed legal contract to provide security for both parties involved. Is there a name for this type of agreement/situation? Our heads were spinning with all the legal and tax issues involved. The seller would not have to pay federal tax if under $250 profit, but we would have to if we actually bought it and flipped it.
Thoughts for the newbies?? Thanks,
@Leland Dunn don't get the cart before the horse. Find the owner, see if they want to/can sell then figure out how to do the deal. In my experience, only about 3 in 100 vacant houses have owners are willing or able to sell. Maybe you will get lucky with this one.
Lots to time and mental energy is wasted by newbies trying to figure out how to do a deal that doesn't even exist and won't ever exist. I know because I have done it. I sometimes still get caught doing it.
I'm 100% with Bill on this one, IF you can contact the owner and IF they want to sell and IF you want to take on the project, THEN worry about the details after that. If you are putting this much energy in up front before having most of the barriers removed, you will never do a deal because you will be wasting your time and energy on 'what ifs'.
Step 1: contact owner
Then worry about steps 2-100
Yes, totally agree with you both. It was exciting to think about but it has to be a PERFECT situation to fall into the scenario I painted a picture of.
We have tried to contact the current owners and left a voice mail, you never know, WE MIGHT GET LUCKY RIGHT!?
thanks for your quick responses.
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