Major Rehab in Short Sale

[Terry Portier]

I have a cash investor with money in the bank doing nothing, CDs are low, so I said I can do better than that. I found a property that has been on the market 6 years because it is gutted down to studs. The owner/agent is in short sale and says they would issue me a warrantee deed. I’d be getting the house for 6 cents on the dollar once the major work is complete and/or cash flow rent very well. There have been prior offers, only from a big fish construction company, did not meet short sale min. I presume, but now 1 year later the seller is telling us the bank may be willing to move on a low offer since this place is going nowhere fast since I guess most people won’t take it on. Yes my rehab construction co. can do the work.

I just need a little help with setting up the offer, perhaps going through the transaction if I get accepted.

I have checked back taxes, liens, code violations. Anything else?

When we write the contract, I’m not clear what to ask of the seller and how to structure the deal?

Should I put a detailed rehab bid with my offer to show the $30-40K we estimate needed to get it to market condition or leave it out?

Thanks in advance for your comments,