Off-Market Deal - Advice Welcome

[Harry Metzinger]

Hi BP, I have a lead from my direct mail campaign and welcome the community's advice on how to handle:

- Purchase Price: $220K

- Rehab: $10K

- ARV: $290K

Property is not yet under contract, but I know from talking to the seller that I can lock it up for around $220K.

Here's what I would like to do and I believe the seller would agree to:

- Inspection, financing, and title contingency of at least 14 days

- Closing within 90 days 

- Permission to market the property on the MLS (I believe the seller will agree to these first 3 conditions as long as I meet their price)

My contract would include a Liquidation Damage Clause which states that Buyer shall be entitled to receive $50K from Seller if Seller decides to terminate transaction at any time prior to close of escrow.

Given this Liquidation Damage Clause, it would give me protection in the event I decide to complete the rehab while the sellers are still living in the property (presuming the sellers are ok w/ this).

For those who say pass on the deal only b/c it doesn't meet the 70% ARV minus repairs rule, no need to chime in. Since it's a small rehab, I am ok w/ violating this rule of thumb.

I would like to do a double closing if possible. (I presume it's difficult to assign a contract to a buyer w/ FHA/conventional financing, but if you think otherwise, please chime in.)

If it's an FHA end buyer, how would you go about completing this transaction? (Rent to end buyer for 90+ days after deed is recorded before entering into purchase contract w/ end buyer???)

If it's an end buyer using conventional financing, how would you go about completing this transaction?  

Any other advice is welcome.  Thanks.