How to structure option deal in Florida
Hi guys, I have a motivated seller who owes $80k loan on the property. He wants 30k cash so total purchase price $110k. The arv with about 20k in repair cost is about $155-160k. I have 11 townhouse units similar to this one so I'm confident of the arv/retail price. Renovation should be less than 30 days and the property should be under contract within 5-10 days based on the market (very hot).
Option 1. Seller quit deed to my LLC and I'll repair and resell for $155-160k then pay off mortgage at sale. I'll be out 30k+20k repair cost.
Option 2. Keep property in sellers name and do a option to purchase for $110k giving me rights to make repairs and upgrades. Then I can list property on Mls, then assign the contract to the new buyer. I'll then pay seller $30k, payoff note of $80k and keep the difference.
Option 3. Something better than what I posted above.
I have lots of experience flipping and even buying and hold, but I'm trying to spend the least amount of CASH to make this deal happen.
Most Popular Reply
I would buy it "subject to " the existing mortgage with a warranty deed and sign a promissory note for the 30k that is due upon sale.