Creative ways to Purchase a property.

[Josh Nabors]

I have found a property that is in need of some work. The seller is VERY motivated to sell and hasn't been able to make the mortgage. Unfortunately, I don't have enough to have 20% down. However, I did qualify for the FHA loan and FHA 203k loan. With that said, it kills me to pay a general contractor to do the work that I am capable of doing.

With that said, I would like to explore other options of purchasing this property. I have heard of "land contracts" and such. 

I have thought of offering to pay the mortgage if I could move in the property( It is vacant). While living in it, I could fix it up myself with the money I would have used as a down payment ( 15,000) and I would essentially be paying her mortgage. How does this work?  Can she add my name to the deed? How do I protect myself so that I don't screw myself? For instance, I rehab the house and she kicks me out and sells it?

I just would like to avoid paying a contractor to do the work I can do, but I just don't qualify for a conventional loan yet. 

Thanks for all input!

[Brian Gibbons]

@Josh Nabors

Dont buy it conventionally,

JV with the seller.

1. Figure costs to sell 10% of ARV

2. Figure labor and materials, get Private Lender Money for materials

3. Put lien on property for labor and materials (retail materials)

4. Give seller a note for ARV - (rehab plus costs to sell) - 5% for JV fee

5. Property needs to be vacant

6. Get JV agreement and Power of Attorney from seller

7. List price .97 x comps

8. You net labor + 5% of ARV

9. Seller gets more money than wholesaling it 70% of ARV less repairs less wholesaling fee

10. Beware - rehab costs need to be spot on, ARV needs to be spot on.