So the first deal I have under contract is a great deal. I have it under contract around 60% of ARV, INCLUDING all repair costs. The only issue is we don't have clean title (yet). We need to go through a quiet title action, and get it done before August (tax sale date).
I don't think this part will be an issue, but the problem is the seller cannot afford to pay the attorney fees to get the quiet title. I am a little reluctant to pay these out of pocket, as that is money I cannot get back. But there is a lot of profit to be made.
I am thinking I will tell the seller that I will pay it, if we lower the sale price accordingly. I know I will be taking some risk, but $2k will not bankrupt me if everything falls through, and I find that an acceptable risk here.
What do I need to do to get the contract price lowered? Have a new contract filled out?
I went through this process when buying my personal home, and I know we filled out an amendment, but if someone could help me out with what steps I need to take I would appreciate it.
Your realtor or lawyer should assist with proper documentation. With that said, you shouldn't need a new contract, but most likely an addendum stating the change in price.
Be sure to state that the monies paid for legal fees are deducted from the previously agreed to sales price, and if the deal doesn't go through, that the seller must repay you the legal fees within X days of cancelled contract. Something along those lines, but get someone with local knowledge to help you draft it.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing