advice on strange partner - Posted by jim
Posted by jim on February 04, 2002 at 22:58:39:
I’ve got a deal in the works … maybe … if I can come to terms with a strange partner. She has a house in a high-end area that could sell for 600k by my estimates, at least. she claims the house next door sold for 700k last summer, which I am going to check on.
I know her personally because she screwed me for $175 on a landscaping deal (I own a landscaping company).
She tried for seven months to sell, dropping her price three times till it was asking at 450K, then she took it off the market. It’s a real fixer-upper among prime cherries in a wealthy area, she has 1.3 acres, two Italian-designer fireplaces, a huge Gunite pool, etc, but EVERYTHING is in need of repair.
I called her and asked informally if we could work something out where I would buy it with an investor and fix it up, asking her what she thought it would cost to fix up.
In the end, she asked me if SHE could be my partner! We worked out something (informaly still)where I’ll get a percentage of the after-repair sale price in exchange for general contracting the repairs.
Why does she need me? She’s a bit whacky for one thing, and needs a semi-live-in nurse as well. She says an electrician screwed her big-time, and she just doesn’t want to deal with the fix-up at all.
I’m looking to make 40k, but will allow her to negotiate me down somewhat.
OK, my question: What do y’all think? And how EXACTLY do I protect myself, seeing I know she’s shrewd and will screw me if at all possible?
If it helps, she owns the house outright, but has a ‘reverse mortgage’, whatever the hell that is. Thanks in advance.