starting out, no need for loans but do have couple of questions

General Real Estate Investing
1

I’ve sold my share in my business and have six figures EURs to invest, so I’m looking ways to actually put my money in good use…

I’m interested to hear what do you have to say about next plan:

I’m planning to find distressed sellers and offer them 65-70% of the market price for their real estate and I also get the ownership after paying the price in cash (no loan on my side). Now I’m granting them the right to buy back this real estate in certain date (6 months etc) for added profit (like I buy for 60 000 EUR, then I’m selling it back for like 65 500 EUR). They have the possession, pay all the taxes, continue selling through the agencies with 90k EUR or whatever price they hope to get etc.
If they are unable to meet certain deadlines (i.e. unable to sell it with their asked price), I can give them longer deadline and also with a little bit higher price, like 67 500 EUR.

If he’s still unable to buy back his property, then his right to buy back will end and I’m the owner of property which I got 30% cheaper than market price.

any advice on any beforementioned steps? Like how to find distressed sellers (who are not yet advertising but have some kind of hardship paying loan and need quick money but want to retain the right to sell it for their asked price), what’s the right price to offer (% of market value) and what would be sensible profit to add for not looking like a robber (ie price for buying back from me).
And, I’m in Scandinavia and prices aren’t dropping in our country, but steadily rising…

Also, my idea is not to be real estate owner so much but to make pure profit…if I’m getting the ownership I’m covering my ass

ty very much!

lobo

2

Buy someone’s home, and then sell it back to them? Here in the states, distressed properties, aka Short Sales require Arm’s Length, and this is illegal. You’d probably be better off finding a different strategy which you don’t have to append the phrase, “So I don’t look like a robber” too.

3

it’s not illegal here, doesn’t matter if it’s personal RE or commercial RE. the “robber” phrase was meant for how much profit would be OK to make…

4

Ashon,

 Isn't there a loophole, though, where you can establish an LLC, buy the house, sell the house to the LLC, and then you sell the LLC back to the original buyer?  Thought I read that somewhere...
5

Uh, first off I neither am, nor play an, attorney on tv. But i’d be leery of ‘loopholes’. You maybe following the letter of the law, but definitely bending the spirit over the table. I guess you’d have to decide on your own morality clauses, and have a discussion with your lawyer.