Has anyone tried this?

[Eli Edwards]

Has anyone ever tried to bring a homeowner/seller in on the flip? Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc. Ultimately being a win win for both parties. Please let me know your thoughts and please poke holes in this idea! Thanks!

[Joel Bongco]

Quote from @Eli Edwards:

Has anyone ever tried to bring a homeowner/seller in on the flip? Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc. Ultimately being a win win for both parties. Please let me know your thoughts and please poke holes in this idea! Thanks!

Aloha Eli, what you are describing is an equity split.  Its a fairly common strategy. At the end of the day its about price and terms.  For some of my homeowners - I provide them with several options 1.  Offer Cash/30 day close 2. Subject To - Settle on Price, up front cash and terms - points/percentage 3. Equity Split.   Most go with Option 1 or 2.   I can walk you through one of our recent Equity Splits so that you can understand the process.  Please DM me if you are interested.  Mahalo!