My First Post: Should I Rehab A Home Where I Am Not On The Title, But Just Sharing The Profit
I have a friend who would like me to help her rehab her grandmother's home. The 98 year old grandmother holds title and wants to sell the home to her granddaughter (my friend) for $220,000. The grand mother will hold the note while we rehab. My friend doesn't have the all the money to fix it up (about 40K). She wants me to put in half the rehab cost and split the profit after it sells (somewhere around 320K). How should I set this up? Hope this makes sense
[addsig]
with that kind of money i would go to a attny. and have it put under contract. maybe a lein to cover the agree split profit after the sell. they are friends now but money, rehab. stress, ect. can cause friction. a contract keeps everybody honest......kenmax
for me. no contract, no deal. but i've been burned several times before and it has always been "friends or relatives". i've found if they don't want to do a contract they were most likely going to "stick me". if you have trouble and go to court the first thing a judge will ask "do you have a contract" if not its a gift.....kenmax
All depeds on your comfort level. Protect your self w/ a contract. Realize the stress this might put on the friendship.
What happens if grama passes in the middle of the project?
lots of ifs