A buddy of mine knows a lady from church that has a house that she will sell us for 80k, renovation would be 30k and we could sell it for 190k. Me and my buddy will pay the renovation 50/50 using cash. The lady that owns the house will be paid once the house is complete and sold. Once the house is sold we pay the lady the 80k, pay our selves back for the renovation and split the profit. How would I do this once I have a buyer? Is this when I would use a double close? I plan to make a contract between me, my buddy and the lady but I'm not sure about the rest? Has anyone done this before? Thanks
@Jimmy Meeker you will probably want to buy the house from her, possibly via seller financing. Otherwise you are renovating a house that you dont own, and hoping that when she sells it, you get the proceeds.
You'll want to have the deed in your name before sinking money into it, in my opinion.
Good idea, thank you
What if she still has a balance on the mortgage?
And when you are done , and the woman sees the house and she changes her mind and doesnt want to sell ? And has no money . How do you think that will play out in court for a couple years ?
@Jimmy Meeker I'm not sure that you can do seller financing with a mortgage in place, but in sure there is some type of creative option for you. I'm not as familiar with those types of deals.
Hey Jimmy, you can possibly do a joint venture contract with the seller to write up the terms. Patriot Title has done them before.
As for the deal, is she still living in the house? If not, that's ideal. If so, that's a problem. Also, regarding the mortgage, that needs to be figured out. Who will pay that? What about insurance, etc?
There's a lot of ways that this deal could go wrong though. I think the better option would be to consider a Lease Purchase or a Bond for Deed. The mortgage would still need to be determined. Again, contact the local title company. Ray Brinson at Patriot is reasonable and not closed minded. Ask him more info on how to structure this.
I would be leery do any work or anything without a very solid contract in place due to reasons stated above.
@Courtney Fricke Thanks for information. She does not live in the house. I will look into the options you mentioned.