Partnering with an estate for flip

[Grant Huggins]

Many homes sold by an estate could be cost-effectively upgraded and potentially sold at a higher price. With the subset of these homes where the executor might be willing to delay marketing/sale of the home in order to potentially gain a higher net from the sale, might the following strategy work?

Have the home appraised.

Use the appraisal as one tool to help negotiate an “as is” value that is agreed to by the executor and I.

Executor and I sign an agreement whereby:

• I am given control of the rehab, marketing, and sale price decision.
• Estate is guaranteed a sale price no less than the agreed upon “as is” value.
• I fund the entire rehab.

If all goes well then we divide the increased sale price at closing in some manner specified in the agreement.