DEAL STRUCTURE

[Audrey Truesdale]

Hey guys im a new investor primarily focusing on wholesaling in the NC/SC area mainly the Charlotte market. I need some expert advice regarding a deal involving family memebers. My grandmother passed away in 2012 leaving her house to my mother and her siblings. There are a total of 4 heirs to the property and 2 of them want to sell the property. I made an offer to purchase the property with a lease option since I dont have the credit to get a mortgage or HELOC. The house is owned free and clear and needs roughly 10-15,000$ worth of repair mainly new kitchen appliances, siding, and both bathrooms updated and remodeled. The tax value of the home is 105,000 but the comps i ran on zillow estimate the ARV as 125-145,000. I want to buy out my uncle and aunt who want to sell, but dont have the cash to do so. Do i look for a cash partner or private money? or do I wholesale it to a Realtor friend of mine and we both take ownership with my other uncle and mother still on the title?? really need some good ideas on this one.....its driving me nuts!!

[Bill Gulley]

Why are you trying to get the property, simply because it's there, it's available?

I can understand you wanting it if you were wanting to live there. Seems you're trying to do the "investor thing" with you family.

The way I see it, if you are thinking you will acquire the home and make repairs with the intent to profit, that profit has to come from some place it doesn't come from thin air and the value of acting as a contractor on such a small repair job is hardly worth the effort.

That means the only way to really make a profit is to buy it low. That seems to mean you have to deny the family of the highest price possible to allow you to make money. Doesn't matter how you slice it or justify your thinking, you'll be depriving the family of the best deal to allow you to profit off of them.

Thinking that a lease-option deal is offered to family on a property they want or need to sell is breath taking to me, not in a good way either.

All of you chip in and get an appraisal on the property and sell it, take your cash share and get out of the way. Zillow is crap. Use the MLS. Your slice of the pie might be better with a cash sale than you playing with it. Then move on to another property where family relations won't be put at risk. :)