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Buying Real Estate - 4 parties involved - What contract structure to use?

Discussion in 'Buying & Selling a Home or Residence' started by puma, Oct 18, 2019.

  1. puma

    puma Law Topic Starter New Member

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    Hello, my question is around what type or sort of contract to use and how to structure it.

    There is 4 parties involved as follows:

    1. Seller

    2. Buyer
    - Buyer Investor (Putting up purchase money)
    - Consultant (property analysis and recommendation)
    - Contractor (construction and rehab)

    The "buyer investor" is working with the consultant and contractor as one team but to be individually paid from said transaction(s). Non are real estate agents but the consultant has over 12 years real estate experience. Looking for advise on how best to structure the contract and or what sort of contract to use if any are available.

    Thanks
     
  2. zddoodah

    zddoodah Well-Known Member

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    I don't know what you mean by "type or sort of contract." Nor is it clear why anyone other than the seller and the "buyer investor" would be parties.

    The only way to get reliable advice about "how to structure" a contract is by retaining the services of an attorney.
     
    Zigner and hrforme like this.
  3. army judge

    army judge Super Moderator

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    Multiple human beings entering into an enterprise where ONE person fronts the money as the others endeavor to enjoy financial benefits of the "moneybags" are adventures best avoided by all, most of all the "moneybags".

    Even if the four individuals put up an EQUAL amount of money, it is an enterprise best avoided.

    Why?

    Greed and power will one day rear their ugly heads.

    If you can't afford to fund your financial enterprises, don't venture forth until you
    can afford such ventures alone, however, when you can you'll be wise enough avoid the siren song of "real estate".

    A contract, any contract, is nothing more than words on a piece of paper.

    No one can prevent his/her fleecing unless one is smart enough to invest in things as a single entity, not with other human beings.
     
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  4. flyingron

    flyingron Well-Known Member

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    As a seller I'd be highly reticent to sell to such a hodgepodge as well.

    What should happens is one person (likely Mr. Moneybags) deals with buying the property while separately contracting with the consultant and contractors.

    Alternatively, the contractor could by the property with having a separate financing agreement with Moneybags and a contract with the consultant.
     
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