How to get this deal?

Question

I have a family member who want to sell her home next year around March and buy another home. She is renting the home out want to sell the home as is because it need work done that she doesn't have the money for. As is she can get about $105,000 for it but ARV is about $150,000-$160,000 and she want me to list it for her. What are some ways I can convince/persuade her to let me flip it for her and make the profit from the sale to make a win-win for both of us. The house need about $10,000-$15,000 in repairs that I could pay for.

Caleb Brown · Answer

I'd buy with from her at 100K and do it yourself. She and you would benefit

Michael Grant · Answer

@Evan Polaski Thank you

Michael Grant · Answer

@Eric Snyder thank you

Evan Polaski · Answer

@Michael Grant, have you spoken to her about what it is worth?  Right off the bat, you offer to buy it for what it is worth and don't take a commission.  Or buy it for $100k with no commissions, and she is still ahead if you were going to charge 3% and buyer agent charges 3%.  That is the cleanest and gets all parties what they want, assuming you are able to buy.

Alternatively, it comes down to understanding her needs and goals.  If she only needs the equity out now, and you can "buy it" for the equity and take over any mortgage payments, then she gets her needs met of equity out and no more monthly cost.  But this also assumes she can qualify to buy a new place with the existing mortgage in place.

Eric Snyder · Answer

First thing that I thought of is to offer to split profits over the $105,000 and forego your commission. I would probably go for that if I were in her position.