New Deal, Need Advice HELP!
I own a few properties in Boston; I have a hard time selling once I buy. I have never sold any of my own properties. Here is the deal I have an investor that would like to invest in my property change it to condos and sell each condo for $265,000-300,000 each. When completed there will be 3 condos to sell. He wants me to put together a contract that allows him to complete the work and pay me $495,000 for the property and he keeps the remaining profit, because he fixed them up and paid for the condo conversion. The property needs a lot of work. Can someone give advise on this deal, is it a good deal, have anyone ever done a deal like this?
Any help would be greatly appreciated, Thank you
I think you have two reasons to look positively at this deal. . one is there is lot of work to be done, and other is you have hard time selling your properties.
If you are making some money out of the deal, why not ? If he is going to invest in property, even if he does not finish the job, the property will be better then it is now, and hence more valuable. But you want to make sure he has experience and finance for the project and he does not put property as colateral for the repair money.
building a portfolio like that is a great way to build wealth.
There is a lot of risk in condo conversions and going against the existing zoning/land use. If you want more than 495 or that would sweeten it, you could take some debt or equity in the deal (you get 10% of profit)back. Both could turnout worthless.
But I am somewhat of a gambler and getting that equity bump would work for me.
I have found the info varies greatly from city to city.
If you find general resource, please let me know.