How can I Flip a Property Without Owning It?
Hello, I need help figuring out how to do this the best way without title, legal, or financial trouble.
We've negotiated a deal with a seller (who we know) that we'll buy his house for $345k in 3-6 months after we're done with renovations so that we can sell it and take the profit. It's like a mix of fix and flip and wholesaling. I know it's pretty dangerous to put money into a house that you don't own even if we know the person and we have a sales contract on it (which we don't have yet). But I'm wondering if there's a better way to do this or an addendum we could add to the contract to hold him liable for any expenses incurred in the event that he defaults on the sale.
I thought I could do seller financing but it's not free and clear and he still has a mortgage which I think would trigger a due on sale clause, right?
Would a promissory note be good in this situation? If so, how would you use it?