Hello to all and I would like thank all of the members who have shared their invaluable insights to this great industry. My question is …I have a potential deal where in there is a package deal of two rehab projects were they are asking $175k combined, rehab work combined is $45k on the high end and the ARV combined is $415k on the low end to avg. How do I go about assigning this, were do I get contracts and how do I structure the contracts. Your help is greatly appreciated.
Howdy Lateef:
I would use the standard State contracts that you can get from your States Real Estate Commission, or title companies or your local Board of Realtors. The seller may even have some forms or if a Realtor is involved they will have the forms or if you have a friend and if they are a Realtor or Broker they may have some forms.
Structure is a bit hard to answer. You should make the deal subject to getting financing. On that note the seller may require you to be preapproved for the loan or have the cash on hand and proof of either before accepting your offer. This makes flips harder to structure. The seller may even have special additional agreements to be added to the sales forms that include on assigning. You need to ask these questions of the person with whom you are dealing. They are usually helpful. If you can not assign you may want to get your buyer lined up first and get an agreement as to how much you want to earn on the deal for finding it for them or maybe be a partner in the deal with them.