Flip strategy thoughts in Beverly Hills 90210.
I'm considering a flip in 90210, will take 4-6 months, and liquidated damages after 8 months (unless out of my control):
-Purchased @ $2.1M
-Construction ~ $600k
-ARV $4.5 - 5M
Considerations:
- My compensation: $600k at close of escrow (in addition to my const funds).
- Possibly performance bonus scale, if sales price goes above $4.5M.
- Owner has done deals with my family over the past 15 years or so.
- He had a partner, but bowed out cuz he bought his dream home instead.
- I'll go on title to protect myself
- All these instructions (and more if necessary) will be recorded into escrow.
My question: are there other considerations to include in contract? I want to cover all my bases. My primary focus is to protect my money in this deal (FYI - telling me to not do the deal doesn't help). I want to structure this deal bullet proof...this is a big chunk of money to protect.