Alternative to Wholesaling – JV with the Seller
An alternative to wholesaling is to do a joint venture with the home seller, where you don’t buy it but offer to do a mild rehab,
let’s say a house that needs updating, MILD REHAB, “grandma’s house”,
Say Arv is 200,000, needs 20,000 in work, I like probate houses for this, the heirs want quick solution.
Offer this to the seller,
we will do a joint venture,
I’ll come in with my money and do the rehab,
pay the workers pay materials,
then will use my agent to sell, pay the commissions and the closing costs, and
then when the house sells I’ll get a check for what it cost to do the rehab, and I’ll charge joint venture fee, and
that fee depends on a few factors.
The mechanics are buy it sub2 or a note w no payments, own it
Get private IRA loan for the $20K
Place guaranteed profit JV agreement for you and the seller
Then improve it – list it at 97% of comps with a high producing agent – work with agent on improvements as far as what buyers want.
“The bottom line Mr Seller is you’re going to have a house that many people want and will pay top dollar for,
you have a good agent that will sell the house quickly because it’s priced correctly for quick sale, usually 60 to 90 days
you have a check in your hand,
To get started we need to sit down and do an estimate of all the cost to get the property ready for sale, and and give you a proposal
My solution will be to beat any “we buy houses” investor proposal by 20%.”
Brian Gibbons www.REISkills.com 818 400 3046
Team@REISkills.com email bj_gibbons
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