How to structure this deal

[Wade G.]

I have a seller that wants 20k out of her house. That is all she wants, she does not want to list on MLS, or deal with realtors or people viewing her house while she lives there. Her loan amount is 89k and the house could sell for 140k if some minimal upgrades are made. Is there a way for me to give her the 20k now and let her move out while keeping her loan intact? Then I make the upgrades and in about 2 weeks list it on the MLS and hopefully sell it within three months. Then upon sale she gets her loan amount paid off and I get the amount earned from the sale over the loan amount.

[Kevin L.]

@Wade G. You are giving her 20k and putting in time and money for the minor upgrades. All of this is potentially at risk if she decides not to pay you the amount she owes upon sale or doesn't go through with listing the property. I'm assuming you don't know how to secure your loan or otherwise get any actual interest in the property. So you will have to sue her in court; if you win, you will have to try to collect from her. 

Even if everything goes right with her, the market can change in a few weeks and you may not make what you expect to make. Are you taking into account agent's commission and other seller expenses?

It's not wrong to take on some risk but it is definitely advisable to seek an attorney's help to properly document the deal and help you think through all the scenarios where things can go wrong. Good luck!