Real Estate Broker · Winson-Salem | Boone, NC · Member since 2018 · 14 posts · 12 votes
I'm currently under contract to buy an off market duplex from a good friend. The house is gutted at the moment and needs $50k in work to get fully rehabbed. I've agreed to purchase the home for "x" price after seller puts $50k into it. For every dollar amount over $50k I'll add it on to purchase price. The goal is I sell my personal house, buy fully rehabbed duplex and house hack it. I'm trying to figure out what legal form or way to put our "handshake" deal into writing. I don't want to put it in the contract because it could waive a red flag with the lender and mess up appraisal/due diligence period. Any ideas or am I overthinking this and it's just a word doc clearly stating everything out and signed by both parties?
Rental Property Investor · Central Kentucky · Member since 2019 · 67 posts · 43 votes
5y
I'm thinking that at the end you need a legally binding contract through an attorney. A typed up note with non-notorized signatures, etc wouldn't stand up if something were to hit the fan.
Investor · Morrison, CO · Member since 2015 · 221 posts · 177 votes
5y
Hey, Garrett. I'm confused by the issue with the lender and any red flags you're talking about. Is there something you're particularly worried about on that?
I'd do it right and have a real estate attorney complete it or see if NC has standard forms you can use like they have in CO. You can download these standard contracts from the Dept of Reg Authority.