Real Estate Investing Discussion Forums - Free Coaching: Meth Lab - Real Estate Investing Discussion Forums - Free Coaching

Jump to content

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

Meth Lab Deal structuring question

#1 User is offline   verbatim 

  • Associate Member
  • Pip
  • PM this member
  • Group: Dealmakers
  • Posts: 71
  • Joined: 31-March 03

Posted 17 August 2010 - 01:08 PM

I currently have a property under contract that I am flipping to another investor. The day we were to sign the contract I was informed by a neighbor of the property that 3 individuals were arrested for cooking Meth in the home & it is currently under quarantine until it is cleaned & inspected. Police say a lien will be put on the home preventing it from being sold until the quarantine is removed, but as of yet I have seen no lien. It will cost $5,00 to sanitize the home and have quarantine removed.

I told the investor that I will just reduce his purchase price by $5,000 & he can pay to have the home cleaned. He will come to closing with the same amount of money, it just gets distributed differently. I also told him about the possible lien, which may force us to structure the deal creatively so he pays the $5000 and not the current owner, and still gets the deed. The investor does not want to pay $5,000 to have a property cleaned that he does not own which makes sense. He also does not want to buy a home under quarantine indefinitely. Because of this I have told him that before closing he can sign an contract with the contractors to do repairs for $5,000 to guarantee that price.

What's the simplest way to structure the deal so the investor is guaranteed ownership in the property after he pays for the cleaning if in fact the deed cannot be transferred until after the quarantine lien is removed?

Share this topic:

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic