Street Smart® WORK for EQUITY Program

Companion to Property Management - Fill properties needing work FAST with this big time profit generator.

Here is a big time profit generator. Many times properties we have just acquired or that has been returned to your inventory, need some sort of repairs. Sometimes the repairs are quite small such as cosmetic repairs including paint and carpet. In other cases the repairs are quite major, such as roof repairs or replacement, basement leaks or foundation repairs, window and door repairs or replacement and repair or replacement of systems like heating and air, plumbing and electrical.

Depending on the market and our available cash we will sometimes offer properties on a “come fix me up” program where the potential buyer can come into the property and provide work in exchange for credit toward their purchase of the option to buy the property. Depending on how you choose to credit that option fee, the option fee or part thereof can be credited to the purchase down payment on the home. These terms are outlined on the “Option to Purchase Real Estate” when selling. You choose which version to use whether it be “Cash Sale” (meaning the Optionee must cash you out when they buy) or “Seller Financing” version (meaning that upon the payment of X% of the value of the house the Optionor (that’s you) would provide owner financing and give the terms of that financing.

When we offer property on a “Come Fix Me Up” basis we are looking for qualified people to do the work based on what needs to be done. Lets face it, as long as you don’t have expensive stained moldings and doors and they use care to cover the floors and window pans, just about anyone can paint. I understand it may not be precise as a professional would do, but depending on the value and style of the home, this may not be insane. As to carpet, they can pick the color - and as long as we approve - they must have it professionally installed.

When it come to systems such as HVAC, electrical and major plumbing, we require these be done by a professional and be paid for in cash so that no lien can be attached to the property by an unpaid contractor. Carpentry also must be properly done. The devil is in the details, so you must take the time to complete the “Scope of Work” forms from the “Street Smart RENOVATIONS” course for each trade.

You might be asking where in the world you would be able to find a buyer that would willing to take on a property in need of such major repairs, don’t forget that people in the trades also need places to live. These people also have friends in the other trades that might be willing to trade work at prices you and I would never be able to get the work done for. Makes the mind wonder, doesn’t it?

Good luck! Let me know how things work out for you. I can personally guarantee this method of getting properties sold will contribute greatly to the financial success to your business, money to your pockets, and less stress to your life.