That Black Mold Subject!
Theres a house thats beautiful on the outside but has lots of black mold everywhere. Whats the best way to deal with this? and after its clean will it return? and is the mold appearing cause of the house being near water?
:-?
What concerns me about the situation you described, is that, as you mentioned yourself, you haven't completed your due diligence on this property. It would be very risky for you to give him 10K cash without knowing about title, etc..
My recomendation, would be to find an experienced investor, who has cash and knowledge to wholesale this deal to. You might not make as much, but you will run a lot less risk of loosing your 10k and loosing this deal.
I agree, wholesaling to another investor is the best way through this one. Also, Never Never Never give a motivated seller cash as an earnest money deposit. You can give him a note, or deposit cash with a title company or title attorney, but under no circumstances should you give a motivated seller cash. That is a great way to lose that cash.
I understand you really want this property. That is exactly why you should wholesale it to an experienced investor. Another "never rule" is Never fall in love with the property. It is purely a business transaction, and emotion has no place here. There is always another deal. Any business decision based even only in part on emotion is a bad business decision -- even if it is profitable.
Before you can really get started with this deal, you need to know what the unit is worth - check any that are currently listed on MLS, and ask the manager if they know of any units which might be available to purchase - one of the real benefits of the condo 'tels' is that they are quick and easy to comp. I'd want to buy at a minimum of 10% less than any MLS sale.
Next, only work with a well established loan broker, or try to work directly with a bank. As long as your credit is clean, you should be able to get a local bank to back you with your 10k down. If this guy needs cash, you'll have a hard time getting him to do a cd.
The nice thing about using a bank or mortgage co's money, is that they'll take care of all of the 'little' things like the title search, and making sure the paperwork is properly completed.
Lastly, this sounds like a FL building and you are in MI, right? if so, how will you handle the day to day management and weekly cleanings, etc?
let us know how this works out!