Purchasing Interest In Large Empty Fixer House
I would like to use my experience in contracting and trades to my advantage - there is a big house that was being worked on by a family that then went back to their original home out of state. In the intervening year and a half, nothing has been done to the house and is still vacant. It is a great rental property and I'm wondering if I can buy a 50% interest in this property with no cash ( my fix-up work is down-payment). I can rent the other rooms out and pay the mortgage and get half of the positive cash flow. Any ideas would be greatly appreciated! Thanks, in advance.
Is there some reason you don't just want to buy the whole thing? I assume you are thinking of offering a partnership with the current owners where you will finish the house for half the profits.
Rather see if you can buy it on land contract wth nothing down. Your cost to finish the house is still the same but instead of owning half you own the whole thing
Especially if you are planning to rent it out this has good benefits Rent it for a year or two and you can refi and cash out the seller and probably put money in your pocket.
Renting rooms, however makes it a boarding or rooming house and the local zoning may not allow that.
.
Can someone explain what a land contract is? Thanks, in advance!
Basically it's seller financing.
Rather than paying a bank monthly, you send a check to the seller, cpa, escrow, or whomever is servicing the contract.
It's not hard to service. My mom and dad did all the time as sellers and buys.
no (?) credit check, perhaps more favorable terms.
wrt to you're original idea, be very careful of getting into partner ship w/ people you don't know.
Depending on the value of the house, perhaps your sweat equity is worth the full 50%, not just the down.
If you do ths, get everything in writting.