Q. I have a licensed plumber that wants to do a l/o on a work for eq. The property's plumbing is unusual but it works. He will do the minor repairs (paint, spackle, etc., but he will probably want to do the plumbing. Should i let him do the plumbing via the work eq (he is licensed).
If so, your wk for eq states that the work should be paid in cash to avoid liens. How would I do that (contract wise)?
If not, what should I do?
A. Follow these steps for a work for equity Lease Option:
1. Decide what work the property needs.
2. Determine if the tenant/buyer can do the work.
3. Determine a fair price for the work if you were paying someone to do the work.
4. Complete a Scope of Work from the Street Smart Renovations package.
5. Have the tenant/buyer sign a Promissory Note for the amount of work they will be doing. Example: if they are doing $4000 in work they sign a $4000 Promissory Note.
6. On the Option Document show the tenant buyer paying the amount ($4000 in the example) as an Option Fee.
7. When the work is complete, show the Promissory Note as paid in full. If they do not do the work, you have a Promissory Note that you could collect.