I found this great property thats been newly remodeled 5bed 3 bath great location. On contract for 150,000 and now I have a end buyer lined up thats commited to buying it for 220,000 with 15k down. The issue with the buyer is they can’t get bank financing so I need to put them on a lease to own option. Now I don’t have the cash to buy the property in the first place. I really need to find a cash buyer thats willing to do a “lease to own” for these people. Everything is in line and ready to go but I have no partner! Thats 70grand spread. All I know how to do is wholesale the deal, but I was wondering if anyone would do a 60/40 split on the spread with me. Anyways I’m in Walla Walla Wa. If anyone would like to give me a hand with this deal. Any advice would be greatly appreciated!
Here are a couple of suggestions to consider:
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Assuming you told your original sellers that you are an investor and planning to flip the property, you might find out what they owe and how they were planning to use their equity on the $150k sales price. If you offer a higher price (by splitting your mark up) and some of your down payment money ($15k), they could be a viable candidate to be your partner as they are already involved in the transaction.
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Offer the sellers a new agreement at a higher price for a lease purchase type agreement. The higher price would be the incentive for them to consider making a change.
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You could offer the sellers your contract at $220k and a ‘release of contract’ fee for $15k (or another amount that could work) to remove you from the deal.
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Use your own credit to buy the house and manage your profit with owner financing.
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Use a credit partner to do the same as #4 and share the profits with the credit partner.
Hope that helps.
Rob
Congrats on the deal so far…
If I may ask… When you signed the deal what was your exit… Why are you worried about a NON buyer when you have this type of equity unless the equity is based on this type of buyer…
Tell the buyer to take a hike and sell it to a buyer who can perform…
Happy hunting
Michael
HI Aces,
Is your seller expecting to cash out at closing?
They may be willing to owner finance the deal.
If not, you can utilize a simple option contract which locks in the deal for you for a specific time period and look to assign this to an investor for cash.
Here’s the real test: if you really do have a deal in your hands, then you WILL be able to flip this deal. The money is the least of your worries if you truly have a deal.
Secondly, make sure you have done your due diligence as far as repair estimates and what is truly owed on this property? Have you opened title?
Dennis