Preselling a Flip
Hello everyone,
Although this is my first post, I've been a member for awhile and greatly benefited from all the information on BiggerPockets! My partner and I have completed a number of different projects using various strategies (wholesaling, new construction, fix-and-flip, buy-rehab-rent-refi, etc).
We now have a new project that seems to be somewhat unique as I couldn't find any previous discussions using the search function. We have a property under contract and were planning on doing a typical fix-and-flip. However, we are in discussions with a potential end-buyer who would be buying the property after completion. Although I couldn't find anything by searching, I'm sure some of you guys have done a deal like this? I would be very interested in how you guys might have structured a deal like this. Ideally, we would lock-in the sales price before actually closing on the property and get a contract in place for the end-sale. The end-buyer could then pick out their finishes, colors, etc. In order to minimize our risk of the buyer canceling the contract, I was think a decent down-payment and a detailed spec-sheet.
Thoughts?
Thanks,
Peter