Man here's an opportunity if I ever saw one. I'm so excited I can barely type......
I found a 5 BR home on a golf course that's bank approved for a short sale. The estimated value according to 4forclosurealert.com is $325K (value given by the county court). FVM I'm guessing is a little below that as the houses in the surronding area of the golf community are much lower in value (about half). I'm thinking that's what the bank has to go on as nothing has sold in the golf community for a few years. So I think an offer of 75 to 80% of the estimated value would be reasonable.
Now here's the really good part. I ran into a builder that took a 5 BR house in trade for building a much larger home for a client. He said he'd pay over FMV for the right place. He said he doesn't care to keep his place and he's had it on the market for a while. He had to reduce the asking price to below the appraised value (I'm guessing $1MM) to $869K. Additionally, this house already has an income of $75K per year as a vacation rental. If I can close this deal, I'll own a million dollar ($1,000,000.00, is big money for me) property that can pay for itself in about 5 yrs or give me a possitive cash flow of of $3K per month! My other option is I could flip it for say $750K and pull out around $500K. Now that's the best case scenario. I am concerned the two properties won't work out to be equal in value. But another good thing is there are plenty of vacant lots that people already own and will eventually build on (big selling point). What better incentive for a builder to move into an area with tons of work within 1 mile of his home. I may have to give back a couple 100K but I'm still looking to clear $300K. That would make my creditors very happy.
This sort of overshadows any previous deals I've been fretting over. I'm trying not to get too excited in case it falls through but,hey man who knows. The sky's the limit!!!
Man here's an opportunity if I ever saw one. I'm so excited I can barely type......
I found a 5 BR home on a golf course that's bank approved for a short sale. The estimated value according to 4forclosurealert.com is $325K (value given by the county court). FVM I'm guessing is a little below that as the houses in the surronding area of the golf community are much lower in value (about half). I'm thinking that's what the bank has to go on as nothing has sold in the golf community for a few years. So I think an offer of 75 to 80% of the estimated value would be reasonable.
Now here's the really good part. I ran into a builder that took a 5 BR house in trade for building a much larger home for a client. He said he'd pay over FMV for the right place. He said he doesn't care to keep his place and he's had it on the market for a while. He had to reduce the asking price to below the appraised value (I'm guessing $1MM) to $869K. Additionally, this house already has an income of $75K per year as a vacation rental. If I can close this deal, I'll own a million dollar ($1,000,000.00, is big money for me) property that can pay for itself in about 5 yrs or give me a possitive cash flow of of $3K per month! My other option is I could flip it for say $750K and pull out around $500K. Now that's the best case scenario. I am concerned the two properties won't work out to be equal in value. But another good thing is there are plenty of vacant lots that people already own and will eventually build on (big selling point). What better incentive for a builder to move into an area with tons of work within 1 mile of his home. I may have to give back a couple 100K but I'm still looking to clear $300K. That would make my creditors very happy.
This sort of overshadows any previous deals I've been fretting over. I'm trying not to get too excited in case it falls through but,hey man who knows. The sky's the limit!!!