Has Anyone Tried This Strategy?

[Andrew Gavre]

I am targeting homeowners with dilapidated homes that need repair and offering to pay for the rehab and split the profits with them at the end of the project after the sale of the home. 

Any idea what this would be called and how to structure it legally? I obviously would want to have control over the property and maybe a pre-determined purchase price?

Thanks in Advance!

[Don Konipol]

Quote from @Andrew Gavre:

I am targeting homeowners with dilapidated homes that need repair and offering to pay for the rehab and split the profits with them at the end of the project after the sale of the home. 

Any idea what this would be called and how to structure it legally? I obviously would want to have control over the property and maybe a pre-determined purchase price?

Thanks in Advance!

Sounds good in theory.  A percentage of these will end up in court when
1. Homeowner decides they don’t want to sell after the repair/improvement work is done
2. Homeowner decides they were “taken advantage of” by investor
3. Homeowner believes they can threaten lawsuit based on Dodd Frank, CFPB non compliance, DTP, etc., and obtain “better” result
4. Homeowner isn’t happy with quality of repairs
5. House doesn’t sell for price anticipated
6. House doesn’t sell in time frame anticipated
7. Homeowner fails to make mortgage payments
8. Liens not found in lien search surface
9. Sub contractor files lien
10. Homeowner has creditor file for judgement
11. Someone files lis pendens 
12. Homeowner dies and heirs don’t want to “split” proceeds
13. Homeowner becomes incapacitated
14. Homeowner refuses to vacate house upon sale
15. Homeowner refuses to cooperate in showing of home when put up for sale
16. Repairs cost more than anticipated