Hey all!
I am looking at a single family, 1922 house, 4br/4garage/2 3/4 bath with a nice deck that is listed for $154,900. Seems structurally sound and only some fairly cosmetic changes needed. It sold in 2004 for $240,000, was foreclosed on, and the bank really wants to get rid of it. It’s in a small town that I normally wouldn’t invest in, but I know a gentleman who wanted a similar property to rent, looked at the property today and loved it.
He has bad credit due to a divorce that has frozen his assets until August, but is willing to give me $5,000 in advance (so he says) to rent the house if I buy it as soon as his social security check comes through (he’s in my town for medical reasons - Mayo Clinic). Says it should arrive any day. He is interested in buying the home, but can’t make it happen until he either has his money or credit back. He is 58 and seemingly very intelligent, but I as a rule don’t trust anyone.
A couple of questions: What should I offer on the house??? How should I structure a safe deal with this gentleman?? What is the most creative way to make money on this deal while still protecting myself and being fair to him??? He is not only interested in buying this house long term, but also interested in investing with me in other properties as well when his divorce finalizes.
Thank you for any and all advice!!!
Justin.