Feedback on an international deal

[Arnaud D.]

Hello Everyone,

I have a proposal from a very good friend in Europe for a real estate deal. I'd love to hear your thoughts and feedback.

There is a lot of 2 apartments available for purchase. Appraisal: One at 320k and the other one 466k

There are potentially 3 people involved in the deal:

1- The person who found the deal

2- My friend who will buy, sell and take a mortgage on the house

3- Me who will put the down payment of 15% ($60,000) and the first six mortgage payments

Here is the deal: The 2 apartments are coming from a foreclosure, being sold by the bank. The person who found the deal works at the bank and will give the deal to my friend along with the mortgage. Since this a foreclosure, we’ll get the deal for $400K for both apartments (instead of the combined appraisal of $786K)

My friend expects to sell the lot for $600k in the next 6 months, so after taxes and all fees it will be $180k profit but we’ll have to split between the 3 of us. Around 60k/person. Any thoughts on this? Obviously, we’ll sign papers so this is agreed upfront. Curious to know if others have done deals similar to this, if it makes sense, and what potential scenarios we should plan for in the contract. Are there any standard contracts folks have used for this?

Thanks in advance for your feedback and help! This is our first deal, so we want to make sure we don’t get screwed :)