Condo with Mucho equity
I found a woman who has a 2+2 condo on the market for 500k (comps are right in there also)
She bought it in '93 after the big earthquake here, and now has almost 400k in equity.
She has already moved into a new house in swanky Brentwood with her new hubby and wants to get rid of this condo because she is carrying this mortgage.
IT has rented for $2500 to a tenant in the past, though it is vacant now.
She isn't opposed to the idea of a lease option, and wasn't even sure how much to ask for a downpayment.
It seems though, that she is mostly concerned about her capital gains reporting.
She really wants to be able to get her equity out of the condo and into other investments. It really doesn't seem like she needs the money.
I live in a similar condo and I know I could get at least 2500 for this, but I'd rather buy, or lease, and then flip it if possible.
Any suggestions?
beacon,
If you do a little due diligence and see how long these types of condo's are on the market for before they sell this will give you a better idea, on what method of investing to use.
It will also tell you what offer to make to the women.
This is why it is called creative real estate investing, have you done your due diligence on the property to tell you the best method to use.
John $Cash$ Locke
I have yet to visit the property, but I know the area well.
Another Townhouse, same style, sold for 525 a month ago on the same block.
She seems motivated enough to listen to some ideas. Like I said, she wasn't even sure how much to ask for a down payment.
I'm thinking of detailing a letter with some trust info, to see if she would balk at that.
beacon
The letter is not going to do what you can do face to face with the lady. You can see her facial expressions, you can get to the bottom line of what it takes to put the deal together.
You can say that at least $30,000 will go to a Realtor, then throw in some repairs which I am sure it will need, plus holding time if it does not sell right away. This will help you work the price down. Then get to the point of what will it take today to buy your condo.
'No' letter, you meet with her, she is probably elderly so she won't beat you up if you show up in person, I promise.
John $Cash$ Locke