Looking for Creative Options

[Gabe Cole]

Hi everyone! I have a free and clear seller that is willing to sell me his property, but he doesn't want to close escrow until after January 1 for tax reasons. The property is vacant and he told me that he would be willing to allow me to start renovating the property prior to closing so that by the time we close escrow the house will be all remodeled and ready to put back on the market. Obviously this will reduce my holding costs and interest carry, but has several potential negative outcomes and risks. Even if I have him sign escrow instructions and his grant deed and deliver back to escrow, he can still instruct escrow not to record if he decided to.

This property is around 600k, so my monthly carrying costs will be around 5k/mo. Wondering if anyone has any work arounds for this or other creative options out there that I should be considering. I know I can just do a long escrow and start the remodel in January, but if there is a safer option where I am not making payments on the property during the next 2-3 months I would be open to suggestions. Thanks!

[Doug P.]

@Gabe Cole Have a lawyer draft a rock solid Joint Venture agreement. Partnering with the seller can be a great way to keep costs down for rehabs.