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Updated about 8 years ago on . Most recent reply

User Stats

61
Posts
16
Votes
Christopher Davis
  • Lender
  • Knoxville, TN
16
Votes |
61
Posts

Has anyone done ONLY the rehab...

Christopher Davis
  • Lender
  • Knoxville, TN
Posted
But not actually purchased the home? My team and I in Knoxville Tennessee have been approached by a family member to do the rehab on their property before they list it. Our initial thoughts were to request all profits over and above a set number. For example, if the home in its current condition could sell for $405k, to request all additional revenue over and above $420. This gives them a $15k incentive. The tough part is structuring it so we are paid before taxes and commissions. A better way to structure might be to say we get paid the difference between the $420 and the selling price. Any help would be appreciated!

Most Popular Reply

User Stats

450
Posts
270
Votes
Chris Eaker
  • Buy and Hold Investor
  • Knoxville, TN
270
Votes |
450
Posts
Chris Eaker
  • Buy and Hold Investor
  • Knoxville, TN
Replied

It's no different than any homeowner hiring a GC to renovate their house. Just give them a price which includes your profit and let them pay you as a contractor.

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