How should I structure this deal?? Suggestions welcome
Hello BP forum members!
Wanted to reach out and see if anyone had any suggestions on the following scenario.
Friend of a friend has a condo in Phoenix. Her 20-ish year old son made a mess out of it with cigarette marks,
holes punched in the drywall, scuffs on the walls, carpet stains, etc. Its all superficial damage, from what I can tell,
but of course I'll get a professional inspection before doing anything.
Anyways, the condo is empty now, and her son moved out of state.
She has made the payments, but never fixed anything inside.
I asked if she was interested in selling and she said definitely is.
She is asking for about 70% of market value, but I want to offer her 50% now + an
equity split after I fix / resell it. She is underestimating the repairs,... but in either
case, she doesn't have the $$$ to fix it up herself.
So, how do I create a win-win situation for a family friend, but still protect myself from
her or her son changing their mind? I don't want to fix it until its in my name, for obvious reasons.
How do I promise a % of the net? I was thinking a promissory note, but I don't know if you can do % of equity using one.
I will check with a RE attorney before we sign anything, but just curious what suggestions
you guys/gals have on structuring some kind of deal like this one?
Thanks in advance!