My Girlfriend inherited a house TOD to her & her sister 4 years ago. When we got it, it was worth around 20k. Now that we’ve worked on it for the past few years, we raised the value to 85k. The agreement with her sister was to fix it up, sell it, and split the profits. She has no work or effort invested in the house.
Now that we are ready to sell it and have it up for sale, my girlfriend’s sister refuses to sell, or even speak to us, and is trying to kick us out and move in. Her sister agreed to be bought out for 25k. We have %100 equity in the house. So, unless we can buy her out, it’s going to be legal hell.
Now I think my only option is to get a private investor deal somehow worked out because our FICO scores fell below 600 when we applied for home equity loans. We have no co-signers. I tried every hard money lender on this site. We paid off everything against our credit, so it won’t be long before our scores are high enough to get a loan.
How can I get a private investor worked into this? Our credit will be good enough in a couple years to get a loan for the house. My Idea- Have a private investor buy the house until our credit goes up enough to buy it back off them giving them a return. Maybe 12% a year until our credit ratings go up?
In short, could a private investor buy this 85k property for 25k, and sell it back to us in 1-5 years for 12% (or so) a year, with the house as collateral on the 6th year?
It’s kind of a lease option-wholesale hybrid of sorts. All I know is i KNOW there is a solution, and for the time being, it’s a little over my head. HELP!