Rental Property Investor · Durham, NC · Member since 2018 · 1 post · 0 votes
I'm trying to remember the name of the flipping strategy where you enter an agreement with an owner where they retain the property while you invest in fixing it and agree to sell on completion. I thought it was a novation agreement, but that isn't pulling up anything. I've heard it in a couple of older episodes of the Biggerpockets podcast. What's the name of the stategy and if you have seen draft agreement,s I'd love to be pointed in the correct direction.
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
8mo
This sounds like a master lease agreement. If you are doing work fixing it up, you'll want to add an option to purchase. This is an advanced strategy, so make sure you do a lot of research first - which I think is why you are here - happy investing.
I'm trying to remember the name of the flipping strategy where you enter an agreement with an owner where they retain the property while you invest in fixing it and agree to sell on completion. I thought it was a novation agreement, but that isn't pulling up anything. I've heard it in a couple of older episodes of the Biggerpockets podcast. What's the name of the stategy and if you have seen draft agreement,s I'd love to be pointed in the correct direction.
There are considerations involved. One approach is to have an unrecorded warranty deed, or a recorded memorandum or at least a lease option. I won't go into details here, but they give you some protection.