they seem flexible...how COULD I SET THIS UP? - Posted by hot-one

Real Estate Investing
#1

Posted by Glenn-OH on April 23, 2000 at 14:11:16:

Never give a contractor up front money that they can just walk away with. Make sure it is for materials - Get the invoice and make sure they don’t mark the material up. Also you have no guarantee that they will not let the “other projects” always get in the way of their finishing yours. If you use them , be sure to put in a penalty for not finishing on time. Make it clear that if they do a good job, you will get more work for them on other properties.
Glenn

#2

they seem flexible…how COULD I SET THIS UP? - Posted by hot-one

Posted by hot-one on April 22, 2000 at 23:03:27:

There is a house for sale.

Small 2bdrm 1 bath, with a large barkyard
needs work, like 20-30k

FMV fixed up: 130K

The house is owned by contractors who have their credit & finances tied up in other projects.

Asking price: 70K ( which includes the 20K to fix up)

These guys are very willing to do 20k of rehab work

My concerns:
-At closing, when the sellers get their 50K for the purchase price, should I ask for the 20k and pay them in incraments as they do the rehab work.
-How can I set it up so that I’ll get my 20k at closing & they’ll do the work.

Thanxs for all responses…

#3

I’d get my own contractor - Posted by Monique

Posted by Monique on April 23, 2000 at 08:54:53:

I’m sure you’ll get responses from more experienced folks. But if this were my deal, I’d only pay $50K and have the work done by my own contractors who have my interests in mind – since future business is at stake.

Monique