Out Of State Owners, HUGE Profit Potential
I came across a deal today where the potential just blew my mind, and I'm afraid to pursue it because I know I sure as heck don't have the cash to close on it if something falls through with an assignment (not to mention, no way I could do a subject to - couldn't make even a single payment!). I was wondering whether any of you frequently deal with out of state owners.
Here's the scenario. There's a horse farm going into foreclosure in a huge equestrian community. Low-end FMV would be $1.2M; high-end, $1.5M (I have not yet seen the inside of the house, but I've walked the grounds). The only mortgage on the property was taken out for $711K in 1995 by the mother, and in 1999 the mother deeded the property to her son. I take it the son and daughter-in-law either can't or don't want to continue payment on it anymore.
The deal here would be unbelievable for someone who could finance it. Even 60% of low-end FMV would cover more than the total cost of the original mortgage - assuming no equity, whatsoever.
Argh. I have king-sized dreams and a twin-sized wallet.
How difficult would it be to deal with this kind of transaction, on an assignment basis, across state lines?
I'd be more than happy to be the birddog on this deal, if any higher rollers than I am want more details!
I haven't heard from anyone on this yet, but I'm calling them this morning. I'll see if I can work out an assignable contract (assuming they're interested in getting the property out of foreclosure), and request further assistance in finding a buyer for this type of place when I know more details.
I'd be interested in knowing more about this property. Get it under contract fast! THEN contact me.
Ken Chipman
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The difficulty you will have is that it is a unique property, making it difficult to both judge the FMV, and to find a buyer. I am guessing many people in here would not be interested because it would require special attention, and could pose problems if it is away from where you live.
Good luck though, if you are right and can assign the contract you could do well. Just make sure you have the appropriate escape routes if you can't find a buyer.
You beat me to it largus, perhaps I stand corrected
Actually, down here, and in the area where it's situated, it wouldn't be considered unique at all, and comps are just as easy to find for these types of properties as they are for normal residences. It's in an equestrian enclave, complete with showgrounds, polo clubs...South Florida is horse central.
Spoke to father-in-law this morning, and will call again this afternoon.
Couple ideas...
Get it under contract that is assumable and then flip the contract
wholesale it
birddog it
get an option to buy it (at certain price and terms) and then sell the option
Sounds like a great Sub. to.
Do a defered settlement (get them their equity after 1 year so you can do a seasoned refi)
Maybe you could just get them to sign a 60 day straight option to buy it at 1 mil and find a buyer to buy it for 1.1 or 1.2.
I 2nd Naxtell's suggestion.
Get an option and go find a buyer..
And don't get greedy. If you can make a quick 20 grand, be happy, take the $ and run.
I'm going to go for less than $1M, since I don't have anything to lose. I'll see what they still owe on the mortgage before I make an offer of any kind.
I wish the county where they actually reside had its public records online. It would be nice to know what's going on that would cause a foreclosure.
awphoenix,
Check your private message the minute you read this. Thanks
Hi,
I can assist in making this transaction work. Please contact me. I'm new to this forum and don't know how to make a private message. Contact me at 407-468-6089.
Thanks!
Based on the responses to the horse post, can I assume if I find a million or multi million dollar house with a couple of hundred thousand in potential profit, that someone on this forum would be interested in buying the contract. I haven't been looking for anything like that because I didn't want the stress of figuring out how to pay the notes until the property sold.
I can help put this together PM me asap.
Hey, all - sorry for my lack of replies over the weekend. There's something to be said for having some true dedicated family time...just not as much of it as I had!!
I am still working on getting through to the property owners - but I'll keep everyone posted.