Brain Storming needed for retail flip on upper end home!
Hello all,
It has been a while since I posted a question, so bear with me here.
I already have some strategies in mind, I'm just looking for some additional input.
Here is the deal.
A new partner and I took a week to find some deals.
We marketed our rear ends off, and calls came in. (Lot's of calls)
We met with several sellers, and here is one of the deals.
We have a house with an approx. FMV of $860k. (Yes, upper end, but this particular area has a ton of them, there is money here like I've not seen in a while.)
This house needs a little cleanup, which we got the seller to agree to do.
We have an option on the house, for approx. 60% of FMV.
We have PLENTY of time to move the house, because we understand it takes longer to sell a house in this price range.
Our first strategy is to seek out a retail buyer of course.
The seller is basically willing to sign anything else we bring him.
However, since the payments are rather high, and the home is so upper end, we decided that a straight option was our best and first choice here.
We can always get the deed later if we get a buyer who needs some seller financing or something.
We will be contacing the local agents in the area who sell homes in this particular price range most often, as well as professionals in the area who can most likely afford this type of home.
We are also prepared to sell this house wholesale if need be.
Heck, with enough down, we would lease option, agreement for deed, carry a second, cover closing costs, what ever.
There is a LARGE amount of equity here, and we'd like to realize as much of it as possible.
So, if you have any experience in selling homes like this, please feel free to send along any words of wisdom or experience.
We are in a rush, because we only have 8 months to get it sold. 
We very well might list the home, with some special contingencies in the listing agreement, such as the right to cancel the listing, as well as an exclusion for any buyers we find ourselves.
We will of course compensate the agent/broker in some way if we do.
Thanks guys,
Jim FL
[addsig]
This may not be creative but here is what I would do. I would get the local RE magazine. Go through it find an agent that has listings in that price range and has there own web site.
Make an apointment find out what the house needs to move. Does it need carpet, paint or what ever. People who buy in that price range don't buy just anything.
Now after the agent tells you what the house needs explain that time is of the essense. And are willing to do what it takes to get the deal done. Then offer a two month listing if they get a signed offer within 30 days they get a 2% bonus if they bring one within 60 days they get a 1% bonus.
So if they bring in a good offer within 30 days they get a big payday. Yeah I realise that this is a lot of money to pay commissions but as they say money talks.
Jim,
Great to see you here at TCI, Jim is a very successful investor in Florida and looks like he is stepping up to the plate big time.
The first thing to do is check with a Realtor to see what the listing time is on this price of house is before it sells. This will give you an idea on the hold time you are looking at.
You have a potential to make around $336K on this deal if everything goes according to plans. I just did a deal on a house that was more expensive than the one you have. I was in the deal at about 55% of fair market value.
When I found out the holding time on a house like mine from checking with a Realtor friend, it was more time than I wanted to be in the deal. I wholesaled the house and still made a nice chunk of change and gave someone a great deal.
Anyway Jim this is how I would look at this deal, money now or money later maybe.
John $Cash$ Locke[ Edited by JohnLocke on Date 11/24/2002 ]
$Cash$,
Thanks for the welcome.
Actually, wholesaling the house is something we had in mind.
We seem to be in a good position, since this home is located in one of the most exclusive country clubs in the area.
People want to live here, but there are not that many homes for sale at all.
And ours is rather new, being built in 1997, with others much older in the area.
By the way, I noticed you are a moderator here.
Perhaps you can help, or direct me to someone who can.
Under my little smiley icon and name, it says, "Newbie".
How do I get that changed?
Not that I profess to be an expert, but I don't consider myself a "newbie" either.
My mentor students probably would not like to see me posting as a "newbie" is all.
Thanks for the kind words and the advice.
I'll certainly let you know how this one turns out.
Should be a fun one.
This past week I spent time with a student/partner in his state, marketing anf going after deals.
We only got this one signed, but he will be meeting with sellers we talked to this coming week to sign a few other deals.
So, all in all, it was fun and productive, and yet again, more proof that this creative real estate investing stuff works everywhere.
Take care,
Jim FL
[addsig]
Hey Jim,
I haven't dealt with deals like this before, but on your question about the Newbie, the more you post the higher your ranking becomes. I am considered a Freshman investor because I have over 5 posts.
Hope I helped, if only a little
Dan
Jim,
I started out here as a newbie, it still sticks in my throat to say this word, not that we did not all have to start out as a new person somewhere in our industry, so I am not against the new person rather the terminoligy used in describing this person. I personally do not use the term 'newbie' when referring to someone just starting out in creative real estate investing. I try very hard to give the best advice I can to every poster old or new, since I am probably the ole man on this board.
I have discussed this issue with the owner of the site, Joel, I said to him that some of the top pro's are not likely to post here if they are labled a "newbie".
Joel, this is not a set up post, when I think of Ronald * Starr as a "newbie" who I see visits here from time to time yet does not post then I think maybe this issue should be addressed.
I understand the concept of why it was done this way, however this site is growing at a phenominal rate. JT (IN), was on the chat room the other night, yet is not posting. Tim Randle posts here, not often enough for me, because of his knowledge of the industry. I could talk about many other 'pro's' that would be here I think if it were not for the rating system.
Joel works very hard to maintain this site for us, he is the man, new posters every day, top's in the search engines, fastest loading site around. So I cannot even begin to suggest he is not the top's at what he does, sometimes however we all need to step out of the box once in a while, so my input in this post will be taken in the light it was intended.
Anyway, no matter what happens Jim, keep posting your knowledge here is much appreciated.
John $Cash$ Locke
Greetings Jim,
I was just wondering. In your original post to this topic you said
"Here is the deal.
A new partner and I took a week to find some deals.
We marketed our rear ends off, and calls came in. (Lot's of calls)
What did you do to get such great results in just a week? I have many ideas and my own marketing plan, but I don't think I am going to get lots of calls in a week.. any advice would be greatly apprecisted! especially since you seem to have some experteese in doing this ( as opposed to being a "newbie )
Thanks a bunch and have a great one..
Wendy
Jim, how did this one turn out for you?
at escrow
Robert