Could a Private Investor buy a 85k property for 25k and Sell it back to me in 5y

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!


If this property is owned free and clear and your looking for $25k to place as a 1st TD and buy your girlfriends sister out advertise in your local paper, craigslist, etc. for a private party in your area with sufficient funds on hand in a bank currently drawing 1% interest and propose in your ad to pay 8% on 1st TD as a 30 year ammortised mortgage due and payable in 5 years!

Hard money lenders do not loan on owner occupied properties!

If the sister agreed in writing to $25k then there can not be a legal battle or “Legal Hell”!!!

Sell the property, enter the written agreement for sister to recieve $25k and balance of $85k goes to your girlfriend!

Any way you cut it there needs to be a signed notorized agreement in writing right now to do anything with the property so you have to sit down with your girlfriend and her sister and put it in writing, have it signed in front of a notory before anything happens!