I'm working on doing a potential deal for a current co-worker(she's leaving for a better job in 2 weeks).
She was divorced and had a bankruptcy in her past because of it around 2011.
I'm trying to find a way to help us both out. I make money, she gets a bigger place she can call "home" and start fixing up to suit her family.
The main issue I have is getting my money out of the deal sooner then later so I can use the cash for flips.
The only thing I can think of offhand is to find a place we both like that needs work, pay cash, renovate it to something we both like, find bank that will refi based on appraisal, refi my money out of it at hopefully 80% ltv.
So I would
renovate for 30k
refi 80k, at minimum 100k value(80% LTV)
Pay myself back to free up cash. Sell to her at 100k in 2 years.
I'm open to as many idea's as possible but this the one that seems the least risky and I get my money back.
Thanks for any suggestions, help, structure etc
Are you going to charge her rent for the first two years, before you sell it to her? :-)
Join the Largest Real Estate Investing Community
Basic membership is free, forever.