Adventures in moving cross country- Volume 7: Next Steps
*disclaimer* this post has waaaay less pictures and jokes than it should. All efforts will be made to rectify this for future posts.
Going to Michigan to check out the house and surrounding area was great fun, but there was plenty to do once we got back for all parties involved.
With the house that we're pursuing not being "move-in ready", we have had to be creative with how we went about getting all the pieces in place so that we can purchase the house along with all the hard work and resources that needs to go into it to make it ready. Creativity can't be just making a plan and sticking to it, so between AO, our friend John and his business partners in Michigan, James and myself, many conversations and email threads have been taking place to hammer out just how we can make sure that all parties are getting what they need out of this project.
When looking at a project with such HUGE scope to it, we needed to be able to think in terms of what our budget would be so we could see what could get done.
- AO needed to get back the money she put into the purchase of the property, the related insurance and the interest she's paying on those funds.
- John and his team needed to be able to make a certain profit for this it to be a project worthwhile for them to put the time, energy and risk into.
- The Brainses needed to have a safe and somewhat livable house to be able to move into when they got to Michigan in June for a total purchase price of $130k.
- A purchase agreement that basically gave us all the security in knowing that the Brainses would definitely be buying the house for the amount and it wouldn't be sold to anyone else. This would also include the renovations that we would require in order to be able to purchase the house.
- A business contract between AO and John's team to ensure they had an interest in the house that would ensure they would be getting the payout they needed upon the sale.
- A down payment from the Brainses to make sure that we had more than just signatures invested, but also to help with some of the upfront costs of the renovations.
- A mortgage needs to be approved by a lender.