Help on deal structure. - Posted by Scot
Posted by Scot on November 29, 1999 at 23:42:22:
I just wanted to say thanks for the good ideas on this website. We purchased a Fannie Mae foreclosure in August to rehab and sell at retail. We just spoke with a couple who gave us a verbal agreement to purchase it. Our profits will be a little over $26,000.
I would like to ask if our deal structure is sound. The Buyer is going to give us a large down payment as earnest money (were are not sure how much), but he wants to close at the end of March. Over the four months he will cover our holding costs. In March the buyer will cash in his CD’s and close with cash.
We plan on using a title company / lawyer to draw up a contract that fits these terms and also have them close the transaction.
Does this sound right? Any suggestions would be greatly appreciated.