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Depending on the market and our available cash
we will sometimes offer properties on a “come
fix me up” program where the potential buyer can
come into the property and provide work in
exchange for credit toward their purchase of the
option to buy the property. Depending on how you
choose to credit that option fee, the option fee
or part thereof can be credited to the purchase
down payment on the home. These terms are
outlined on the “Option to Purchase Real Estate”
when selling. You choose which version to use
whether it be “Cash Sale” (meaning the Optionee
must cash you out when they buy) or “Seller
Financing” version (meaning that upon the
payment of X% of the value of the house the
Optionor (that’s you) would provide owner
financing and give the terms of that financing.
When we offer
property on a “Come Fix Me Up” basis we are looking
for qualified people to do the work based on what
needs to be done. Lets face it, as long as you don’t
have expensive stained moldings and doors and they
use care to cover the floors and window pans, just
about anyone can paint. I understand it may not be
precise as a professional would do, but depending on
the value and style of the home, this may not be
insane. As to carpet, they can pick the color - and
as long as we approve - they must have it
professionally installed.
When it come to
systems such as HVAC, electrical and major plumbing,
we require these be done by a professional and be
paid for in cash so that no lien can be attached to
the property by an unpaid contractor. Carpentry also
must be properly done. The devil is in the details,
so you must take the time to complete the “Scope of
Work” forms from the “Street Smart RENOVATIONS”
course for each trade.
You might be asking
where in the world you would be able to find a buyer
that would willing to take on a property in need of
such major repairs, don’t forget that people in the
trades also need places to live. These people also
have friends in the other trades that might be
willing to trade work at prices you and I would
never be able to get the work done for. Makes the
mind wonder, doesn’t it?
Good luck! Let me
know how things work out for you. I can personally
guarantee this method of getting properties sold
will contribute greatly to the financial success to
your business, money to your pockets, and less
stress to your life.
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