I have come across a company that markets to realtors to provide their sellers with an opportunity use this company to complete any upgrades or a full rehabs on their property to be listed at the maximum market price and the company (investor) is paid at settlement. I am trying to wrap my head around this. How does this company/investor protect them self from a seller that deciding not to sale the property. I'm sure they placing a mechanic lien against the property, but it can take years to recoup the money spent on upgrades/rehab to the property. Do you think they have the seller add their name to the deed? What are your thoughts?
All they have to do is over charge for what they did and put a 6 month balloon on the payment for their work. That pretty much covers their a$$. They get paid for their work and will get paid when the house sells. If the seller decides Not to sell, they still recover their money that they put out.