Jamaica Plain, MA · Member since 2015 · 2 posts · 0 votes
Hi,
Recently I acquired a few properties in Massachusetts but noticed that many of the potential investors would come to me saying they need 21 days to close on a property. I too am a wholesaler and investor but even the cash investors I know can close in less than 7 days, even when their money's held in the bank. The reason I'm posing this question is because I have a deal in the South Shore of Massachusetts (Weymouth) that needs "real cash" to close. Here's a snapshot of the numbers:
Type of Property: Fixxer-Upper and/or Tear-Down
Purchase Type: Cash Purchase ****Required****
Asking Price: $329,000 (MLS ID 71853716)
After Repair Value: $425,000 - $450,000
Closing: Must close on or before August 31st, 2015
Deposit Required: Yes (Non-Refundable)
***Please Note*** there is SOME wiggle room on the asking price
If you know someone who's a real cash buyer and can close in 7 days or less, please respond to this posting!!
Why do you need someone to close with cash in 7 days?
In your description you said they have 52 days from now, someone could get a full on bank loan with that much time.
As a side note when you try to drum up a false sense of urgency in a listing with the "all offers to be reviewed the Monday after the Open House" stuff you should erase that when nobody bites. Being 3 weeks later it says to me that there is NO urgency to make an offer.
As a 2nd note just looking at the numbers it doesn't look like much of a deal, the fact it has been listed for 39 days confirms that in my mind without really needing to vet out the numbers. You aren't likely to find an investor that would put $330K (+repairs) cash from the bank into this. You need to find a home buyer that will fall in love with the view and not really care what they pay for the place.
Why do you need someone to close with cash in 7 days?
In your description you said they have 52 days from now, someone could get a full on bank loan with that much time.
As a side note when you try to drum up a false sense of urgency in a listing with the "all offers to be reviewed the Monday after the Open House" stuff you should erase that when nobody bites. Being 3 weeks later it says to me that there is NO urgency to make an offer.
As a 2nd note just looking at the numbers it doesn't look like much of a deal, the fact it has been listed for 39 days confirms that in my mind without really needing to vet out the numbers. You aren't likely to find an investor that would put $330K (+repairs) cash from the bank into this. You need to find a home buyer that will fall in love with the view and not really care what they pay for the place.
Im with @Shaun Reillyon this one. The problem is that you are asking $329K for a $200K house. There are no comps in Weymouth to support your $425K-$450K ARV. There aren't even comps to support the $329K asking price. The closest one is Birchcliff which is UAG at $325 and has already been rehabbed. You need to cut ties on this one. Best of luck @Robert Johnson.
Thank you for the reply! One of the keys to this opportunity is understanding the market in Weymouth, MA and specifically Whitman's pond!. There are multiple units in the are valued above $450,000 including one house to it's left which is valued around $475,000. The house on the right was renovated in the last 10 years but there hasn't been an appraisal on it since they bought the home in the 70's and the updates are not calculated into any appraisal done on the property. Another key factor is this being waterfront property w/o the need for flood insurance. I can explain more about this area in conversation!
Because the sellers know the area; and yes maybe the house may be only worth 200k to an outside investor, there is plenty of upside for a savvy developer which is why the numbers are what they are! It sound like I'll count you out for this opportunity but I'll be sure to put you on our mailing list and hope to work with you in the future!
FYI...There's an open house tomorrow (July 11th, 2015) from 10:00am to 12:00pm
Not trying to crap on the place but you are definitely barking up the wrong tree(s) trying to entice investors and developers for this place.
If the upside is $475K the place is barely worth $329K to me if I have to do much more than sweep it.
Where in god's name is there margin for a developer? Buy the place for $329K, knock it down and build a new house there. Be all in for low end $525-600K with best case of selling at $475K from what you said. Now a nice new construction place could set a new high, but you need to get around 50% above current top value to make it worth considering.
Looks like a beautiful area that someone could fall in love with.
Stop wasting time talking to people that care about numbers and talk to people that will love to live there.