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Who out there has fronted (under contract obviously) labor & materials to reno somebody else's house that just isn't selling? You in effect make it saleable and it sells; of which time you get paid out of the sale.
 

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You would have to have an iron clad contract and be ready to lien at a moments notice. I am not sure how it works if they decide not to pay. I assume you would have a lien on the property in advance and it gets paid off during the sale.

Pretty scary in this economy. I would hate to sit on 20,000 dollars worth of repairs fro what could be 6 months to a year unless I was assured of at least doubling my money, and that would be low.
 

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I don't think a lien would have much value if the house goes into foreclosure.

OP, have you completed a project under these cicumstances or are you wondering if you should?
 

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Plumb, Level, Square.
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I don't think a lien would have much value if the house goes into foreclosure.

OP, have you completed a project under these cicumstances or are you wondering if you should?
I see a property I want to flip but they won't come down to my price because they owe more than what I'm offering. Was thinking, do the flip while they still own it (essentially they would contract me to flip it) and when I'm done it sells because now it's worth what's being asked.
 

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If you can't convince them to sell it, with the work being done with you as the owner, giving them some of the profit after you flip it, you should walk away. Sounds like you are doing all the work, assuming all the risk, and crossing your fingers hoping it sells high enough to make what you want AND trusting them to pay you when it sells. What if it doesn't break even. With the work done, and h.o. ready to move, they could be in a situation where they will take less then agreed, guess who gets the shortest stick. Wouldn't even do that for family.
 

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I started down that road once, got out as soon as things started looking funny, when it was all said and done, I lost about 1,000 , owner lost ALOT more, bankrupt! Be careful.
 

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I see a property I want to flip but they won't come down to my price because they owe more than what I'm offering. Was thinking, do the flip while they still own it (essentially they would contract me to flip it) and when I'm done it sells because now it's worth what's being asked.
That would be great if you had a guaranteed sale and a contract stating how things would be divided. But I am guessing you don't, and this economy doesn't guarantee a sale.

Then what?

Get the bank to do a short sale if you want it that bad and if the owners are currently in default. It will take months though.

I am sure there are lots of other houses that would be less trouble.
 
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