I purchased a townhome from an inverstor using hardmoney in Baltimore two years ago. He mentioned to me something called a cash out deal. Its a deal where the wholesaler give a percentage of the profit to the rehabber once the deal is done. Anyone know if this is legal ?
richboy434,
I’m not too sure what you’re asking. It sounds like you have a property that needs rehabbing. The rehabber I guess would be a handyman/contractor. When you sold the property you would give him a percantage of the profit instead of paying for the work he did.
If this is what you are asking then there’s nothing illegal about it. Basically you go into a partnership deal.
I’ve done these and most of the time they worked out. Be sure you get a good partner that does good work fast. Time is usually your enemy on these kind of deals.
If this is not what you meant give your explanation another try and I’ll try to help.
Don