All Forum Posts by: Joshua Johnson

I'm looking at purchasing a property that is an area with low volume, and is very tough to comp to homes that have sold nearby. It's a property that with the most direct comps that are available, is probably an ARV of $250k, however, most of those comps aren't fully renovated, and are more plain/boring homes, while this home is a 100+ year old, historic Victorian that I believe can sell for quite a bit higher potentially, but I can't risk getting into it making that assumption.

I'm meeting with the seller tomorrow to discuss, but I want to propose an arrangement where I buy the property at the price point I know matches the justified ARVs, but shares 20% of the profits past a certain price point. 

For example, ARV at the moment is $250k, if I sell for $250k, the seller wouldn't get anything more, but if I'm able to sell for $350k for whatever reason, I would share 20% of that $100,000 difference with them, and they would get an extra $20k on the back end of the deal.

Has anyone ever done something like this successfully? Is there anyway to build it into the Purchase and Sale Agreement, or would it have to be an agreement we sign after closing when I formally take ownership of the property? 

I'm looking at purchasing a house in NC. So far, I have a good relationship with wholesaler who introduced me to the seller to see if he was willing to go lower on the purchase price to where I need him to be to justify the numbers. 

Assuming I do get him to agree to a lower price, what would the process be to then fix the wholesaler's contract. Would they then agree to the lower some to fix their agreement, and then I sign the assigned contract with the wholesaler?

As I mentioned, so far it's a great relationship with everyone, and I'm not trying to circumvent the wholesaler at all, just trying to get the numbers to work on my end to flip so everyone wins. 

Any insights would be greatly appreciated!