I have a deal with about 35% equity, seller couldn’t sell because of 10K in repairs cost, he’s not willing to give up 100% of the equity; what about if I get a % of the deed then I take care of the repairs and sell it sub2? I could get my money back at closing plus monthly and backend profit.
any advice!
You’re making this a bit too complicated I believe. You don’t want a % of ownership with a seller because you’ll need them to sign the deed when you sell it, and who’s to say they’ll even be around or go along with it. The answer is to just find out how much cash he wants out of the deal and figure out a way to get it to him.
If you have the money maybe you could just give it to him in exchange for the deed.
If you don’t have money just give him a note at closing. I’d push for $0 payment / 0% interest…here’s how you sell it: “now the way we usually work it, is that we pay you that equity when we cash out, would that be ok?”
If you ask the seller enough questions you’ll figure out exactly how to pay him …and how much …without negotiating from your heels.
Get the deed. Give the seller a note for his equity. Nsu1997’s suggestion to offer zero interest and zero payments is smart. I would add a “because to the request,” like "because there is so much work to do, I need to pay you your equity in a lump sum without extra costs. Then work up from there.
Always have a “because” for your requests, and never just give up a request without getting “something” in return. It doesn’t have to be something equal, but you MUST get something in return for anything you give up. Otherwise, whatever you ask for …and then give up without a trade off …looks about as sincere as an “I love you” from a five dollar prostitute.