Rehablist Forums

I know someone that is trying to sell their home but it needs some work and therefore is not selling. I don't want to buy the house and pay for closing and all. Can I buy the house on contract and do the repairs and resell the house for a higher price then pay the seller and keep the differance at closing? I heard of the term contract on deed. Is this something that will work here. If so, how would I need to write it. There is only $10K to $20K profit in it so I don't think any investors would be interested in it (like hard money lenders or private investors). 

Any Ideas????

Hi, Some possible ideas:

Find out if there are any liens on the property.Get the deal under contact(assignable) for the lowest 'cash' offer from seller. Unless you are experience contractor and have the cash to take the risk- especially in this market, I would not do there repairs- and I'm an experienced contractor. The amount of cash and time and exposure involved your ROI on this deal compared to other deals- it might be better to go put that money to use in marketing on finding more and better deals. A lot of times people get into thinking that the deal can only go down 'one way' and that could be their down fall.

good luck

 

You should only do a deal where you have the property in your control and the owner no longer lives there.  If they still live there and they change their mind about selling after you fix the house up, you will have a very difficult time getting them out.  I use Local Hard Money to get the money I need for deals in this market.