Potential Deal! (Need advice and ideas)

[Thomas Phu]

Hello everyone!

Here’s the backstory (we are from the greater Boston area):

My family and I just recently finished our first 2nd fix live and flip deal. We are currently living in the second home in a much better appreciating neighborhood. The neighbor of our new home was a older gentlemen that had two properties and was interested in putting the property on market. We were able to persuaded him into selling us the neighboring home. My sister and brother in law bought the property for their family to live in for below market value Great deal. (NOTE, they are already living 5 mins down the street in the same city but much better neighborhood than we were in)

So here’s the problem, that house technically belongs to me and my brother in law who is a mortgage broker is the grantor of the title (I’m on the title so he could use the First time homeowner advantage). They were planning to live in that house but midst renovation he’s having second thoughts about moving out of their current home and is thinking about selling after Reno. The house is gutted and has complete permits and building plans. Also, reno has been postponed and placed on standstill for a month.

Is there a way I can craft up a deal where I can buy the house from my brother in law and create a win win situation?!

My plan is buy the house from him and complete the renovation and then put it on the market. What can I do?!

[Dan K.]

Hi @Thomas Phu,

There are plenty of ways to create a win-win.

1) Purchase from brother in-law, complete reno and sell

2) Purchase brother in-law's interest subject to the mortgage. You pay the mortgage, renovate, sell and pay back bank and brother in-law's notes

3) Sell as is. You might be surprised at what you can get with permits in place.

4) You can also do a BRRRR, redevelop the property, turn it into condos, etc. You have many, many options.

The first thing you need to figure out is what will make your brother in-law view the investment as a "win?" He might for example just feel like at this point getting his money out is a win.