Partnering with a seller on a Wholetail deal.

[Christopher Dumelle]

I put in an offer yesterday on a home for $46000 the owner states they want $50000, they currently have it listed with a Realtor for $85,900. I was wondering why if he has it listed he contacted me, I don't want to step on anyone's toes. they stated their Realtor told them that if he can sell the home they will only charge the 3% commission vs the 6% he would pay if someone else sold it. They have had it listed on and off for about 3-4 years, the price always being much higher than it is now 90-110K. 17 homes have sold within a half mile, and 6 months for an average of $83000 and a median of $80000.

The home is in good shape it needs some minor updating to show well, and the people that are living there are disorganized. With the home owners, and mainly their stuff out, the house should sell very quickly as-is for a conservative 60-65K. With 5-10K in updating the home could easily sell for the median price or more but to be conservative lets say 10% under so about $70k. They own another home that they want to move into, but want this one gone first.

My thought is seeing if they would be willing to sell the home on terms amortized over 20-30 years with a 1 year balloon. Then sign a promissory note that when I sell the property after some renovations we would split the profits 50/50 after all expenses-my payments to them. So I would have a small payment to them, plus the other home expenses until I sold the home, but I would have a year to do it, and my profits would be conservatively 5k.

My other idea would be to wholesale the property normally, or find a money partner.

Any thoughts would be appricated.