I am not sure how to structure this deal and need some feedback. I found this property on Craig’s list. The property is vacant and the current homeowner does not want to sell it for less than $160K. He is very motivated and just wants to break even at this point. With about 25-30K it could probably sell for around $230K so there is money in the deal. I want to flip it but never actually purchase the home and just have the title and deed linked to the current homeowner. I will be bring the contractor and funds to the table but how would I contractually do this? I will need to structure it so that I have full control of selling and at what price point. I want to lock this homeowner in at $160K and take profits for everything over my all in cost. Does anyone have any contracts or have done something similar and could pass on some advice?
What you are proposing is way too risky. But, you could do a Lease/Option with a two or three year option at a specified price (ie $160,000). Get a Title Report to make sure you know what you've got. Since you are not familiar with this process I would have a Real Estate Attorney put together the Option Agreement. The Title and Loan stay in his name until you exercise the Option and pay off the $160,000.
I suppose you could file mechanic's liens on the property. The owner would either have to fight the liens or they would be paid (to you) and released when the property sells...
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