All Forum Posts by: Jorge Torres

Not sure I will make it today, will try my best. Thanks Darren.

Thanks for the response Dan!

To clarify, the owner thinks the property is worth $160 - 180k and since it needs $20k in repairs he was willing to sell it to me for a "discounted" price of $140k. I do not agree with his value and estimate the ARV to be more like $140k. So we are not on the same page when it comes to how much his house is worth.

You bring up a good alternative but in this case because the owner thinks his house will sell for higher he is more inclined to an agreement where he gets the upside after I collect X amount in profit.

I am not saying this makes total sense...but thats what the way he is looking at it....so was wondering if anyone ran into a similar situation and has ever structured a deal in this manner.

Hi Everyone,

Im a newbie to BP and need some guidance on a potential oppty in NJ.

ARV of property is approx $140k. Prop needs no more then $20k in repairs. Property is owned free and clear by the owner.
Problem is the owner thinks the property is worth $160 - 180k, but is willing to take $140k for it :-).
I let him know that would obviously not work for me, I could offer $60k......he is not willing to go for that but is open to creatively working something out. The owner is disabled, wants out asap, and needs approx $40k to move.

I was wondering if a deal could be structured in a manner in which I can give him approx $40k, and then I get the first $40k in profit and then he either keeps profit above and beyond or we split profit above and beyond. For example.

- Owner gets $40k up front to move.
- I invest another $20k to rehab.

- Property sells for $140k
- After commission, and other expenses there is $125k net.
- I recover my total investment of $60k plus my profit of $40k. Owner gets the remaining $25k.
OR
- I recover my total investment of $60k and we split the profit. Owner gets the remaining $32.5k and I get $32.5k

Is something like this possible? If so how?

Thank you!!!