Has anyone tried this?

Question

Has anyone ever tried to bring a homeowner/seller in on the flip? Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc. Ultimately being a win win for both parties. Please let me know your thoughts and please poke holes in this idea! Thanks!

Peter Mckernan · Answer

@Eli Edwards

Just like Tanner said, a quitclaim/promissory note must be added to the property. If this does not happen the seller could walk with your hard work, equity, and money. I have a couple of people that this has happened to, and you need to have it in writing and tied to the property to make it work.

Tanner Pile · Answer

@Eli Edwards Hey Eli, I have head of people doing this before. Some have done owner financing with an agreement to pay all interest and equity splits when the home sells others have done it where they do a quitclaim adding their name onto title with the seller so once rehab is done the seller can't try and cut you out of the deal.

You're essentially partnering with the seller/owner in this scenario. Can work out very well. you just need to make sure you and the owner/seller are on the same page.

Drago Stanimirovic · Answer

Hi Eli,

This is a creative and potentially win-win strategy that could work well in the right situation. Bringing the seller in on the deal not only gives them an opportunity to benefit from the upside of the flip but also positions you as a problem-solver, which can build trust and goodwill. Sellers who are in financial distress or dealing with a property in poor condition might be more open to this type of arrangement if it helps them get back on their feet.

The key to making this work is transparency and clear communication. Structuring the agreement properly, outlining how profits will be split, who covers the rehab costs, and what the timeline looks like can ensure the seller feels confident in the process. This type of deal can also help you minimize upfront costs, as you’re reducing the cash needed to buy the property outright by aligning the seller’s financial outcome with yours.

While there may be details to work through, such as crafting a solid contract or ensuring alignment with any financing you bring in, these can be easily addressed with the right team in place. The big opportunity here is creating a scenario where both parties come out ahead, especially in situations where the seller might otherwise walk away with little or no proceeds.

If you’re considering moving forward with this kind of structure, I’d be happy to assist with running the numbers or exploring funding options to make it happen. Let me know how I can help.

Drago

Has anyone tried this?

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