Splitting The Equity
I am interested in a pre-foreclosure, and there is a substantial amount of equity in the property. I intend to buy the property. Not wanting to be a pig, and inasmuch as the owner is financially distressed, I would like to split the equity with him. What is an appropriate clause to include to set forth this agreement and where would it be included, i.e., a separate contract, or in the sales contract itself?
What is your exit strategy? What is your acquisition strategy? If this is a straight purchase or a subject to for you, then you can effectively split the equity in the price you offer. If you are planning to so a short sale, which really is not appropriate if there is a lot of equity, then you cannot split the equity.