We found the FSBO that we are interested right around the corner..very exciting!
Upon calling the owner, we found out that he just put the property up for sale. They live in Long Island and purchased the prop. 4 years ago for their boys to attend college here in Upstate NY. The boys have just graduated and it is time to clean up the place and sell. FSBO sign on the lawn.
We are contractors and know what needs to be done. He would love to sell as is and not have to deal with the improvements that need to be made. He states he would hold a mortgage as the house is free and clear, with 20% down and 7% interest.
Here's our idea...tell me if this sounds like a win win for both...
He holds the property for us for 24 months. We pay for all the repairs out of pocket and ask for 3 months to complete the makeover. We then start making payments agreed upon plus a credit so he feels like he making a bit extra. We have a clause that states we can rent the property and we can reassign if we so choose. If by the 24 months we can't do it, we lose our money and he has a better property than he started with and puts the sign back out.
Sounds great right.. now my questions are...since this would be our first deal...
How do we convince the seller to pay the taxes?
What if something major happens to the place while we are renting it...who is liable?
Should we put a cap on repairs that we will pay..and is that fair to the seller?
I feel really positive about this deal...I know it is totally feasible..just a bit nervous on the presentation part...but the seller won't know that.
Any advice? Anyone done this one before?
Thanks for the time!!