$638,000 In EQUITY! 65% LTV! How Easy Will It Be To Find A Buyer Or Investor 2 Assign My Contract 2?
Hello All,
I have a problem or maybe not. I have a property under agreement, which is Brand Spanking new (that has an elevator by the way) and being sold by the builder. The builder was going to originally make it his home, however, he decided to build another so I have locked down the property for costs to the builder.
Here are the numbers:
Appraisal: $1,803,000
Purchase Price: $1,165,000
Equity: $638,000
Loan to Value: Less than 65% LTV
Property is located near a Beach in Florida
Now usually 65% LTV is a no brainer, however, this property is still in the millions.
How easy should it be to find an investor who is interested in the deal?
Any recommendations of where to locate one?
I have my list but none of the buyers are in the million price range.
I really want to find a buyer and make $200k from the property and leave the other $438k for the buyer to have a good margin of profit, however, I would not mind assigning my right to the contract to another investor for $50,000 (50% paid upfront and the remainder at closing). I think that is an extraordinary deal taking into account the amount of equity in a Brand New Home.
Not to mention have two more deals almost duplicate to the one above. The numberes are pretty close in comparison and the LTV is the same.
Please assist me in the next step that is needed to complete this deal. I believe that the hardest stage is completed, but I still need your advice so my ears are wide open to what anyone has to say.
Thanks for your time!
IF you are going to pull this off then it is going to be a retail sale IMHO. So IF you are going to do this you should get in touch with THE expert high end realtor in that town and start asking how to sell it - are you sure the builder has not already done this and failed? The key is all that equity (are you sure there is that much - when was the appraisal done?). Perhaps you should try to locate a realtor who would be willing to accept the assignment of your contract. The way this gets done quickly is you sell it to the end user for $1.3-1.5M...if you can find one.[ Edited by rehab2day on Date 08/27/2007 ]
Just listening to a Florida expert and he said values ran up so high and fast in the last couple of years, can these properties maintain these values? Declines in value are inevitable.
Just his opinion.
Rehab2day makes a good point as well![ Edited by whitebb on Date 08/25/2007 ]
I will bet dollars to doughnuts that the "Real" value of the home is well below the price that the builder has for you.
Since you do not have high dollar buyers, go to the Fancy Realtor in the area. Let them know that you have a great property at a great price. Meet them there at the property and let them know that you are thinking about listing it with someone. They will give you a price and an estimate of how long the property should take to sell. Ask them how should it be priced to sell it in a week. Then let them know they have a week to sell it for 5% commission. They should have clients who are ready to buy at any time. Maybe they can have an open house for their clients, maybe a cocktail party. Maybe you can place an ad in the paper that you have a house that is 20% below market for the right cash buyer!!!
I guess the bottom line is that you are going to have to go way out of the box for this one.
I just want to thank you for all of your responses... they were very helpful!
Hundredfold......
Did it sell?