Help structuring a deal amongst friends

[Tom Fitzgerald]

Looking for some help since I've only done MLS/Bank financing deals.

A friend has a condo that held a family member for years and does not want to be a landlord and wants to sell.  Below are the details, we are looking for a way for both of us to win in this if possible.

• The assessment is $180k
• He wants to walk away with $160k
• He owes $50k on it
• He wants $50k in the near future but doesnt need the full amount right away and would rather save the taxes 
• There needs to be $30k in remodel prior to renting again 
• Rents will be $1.6k/mth which will cashflow slightly given conservative numbers
• I am a contractor and my thoughts were the following but feel there's some holes that need filling in.
• I would take over his monthly payments while the rehab is being done.
• I can cover the rehab costs out of pocket.
• I get it rented and then go to the bank to finance it.
• What I'm not clear on is the best options at this point.
• If he doesn't need the full amount immediately is he/I better with him holding the note from a gains perspective?
• What would be the structure needed for me paying the payments and doing the repairs?  Is that a lease option?
• Thanks in advance.