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Updated over 9 years ago on . Most recent reply
How to structure this opportunity?
I have an opportunity to purchase a property well under market value but want to get some ideas as to how best to handle it.
One of my sub-contractors lost the bid on a tax sale property that was owned by one of his family members. He has a $30,000 lien on the property but he won't ever see that money unless or until the current owner sells the property.
He has offered to purchase the property from the current owner for twice what they paid and because it was a "family-owned" property, the current owner has agreed to sell it to him, but him only at this price.
My contact, the subcontractor isn't really in a position to buy the property and hold it but is interested in getting his $30,000 back so subsequently he has offered to sell me the property at a price we'll under market value to accomplish this.
If he buys it and closes he'll have the usual fees, taxes, etc. and then he'll immediately sell it me and we'll have the same associated costs again.
How would you structure this deal to avoid all of the duplicate fees, etc.