2 million dollars for a 300k condo, would you accept? Note L.A

Buying & Selling Real Estate
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2 million dollars for a 300k condo, would you accept? Note L.A

Rudy Avila
Rental Property Investor · El Monte CA · Member since 2018 · 134 posts · 66 votes

If i would to offer you 2 million dollars for a condo 300k market price, wold you accept? Here are the numbers Bigger Pockets players here are the numbers. Especially the note players. I know my numbers. I want to hear others opinions. Anywhere in the US.

City Population 115k 

Metro 13.2 Million population

Medium Income 60k a year

Medium Home price $668,500.00

Unemployment 4.2k

Population, Job growth are growing every year for many, many, many years.

Property crime rate under the US average. Pretty much very strong Market compare these numbers pound for pound to anywhere you want in the US im looking for your opinion. 

Condo market rate 300k. 2 Bed 1bath

HOA $220 Includes Water and Trash.

Market Rental $1600.00 Per month. 

Taxes $3100.00

Offer Proposed. 

2 Million plus 10k down. 

Monthly Payments of $700.00

Note of $700 x 285,57.14 payments. 

Would you accept why or why not? Please let me know your honest opinions 


Ignore Keywords: Seller finance, financing, note, notes , inversion, inversion, , inversiones ,paisa, paisas, takuache , takuaches , condos, 

I'm not saying I'm gonna rule the world or I'm gonna change the world, but I guarantee you that I will spark the brain that will change the world. And that's our job, It's to spark somebody else watching us. We might not be the one's, but let's not be selfish and because we not gonna change the world let's not talk about how we should change it. I don't know how to change it, but I know if I keep talking about how dirty it is out here, somebody's gonna clean it up.
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Kevin Chan
Member since 2019 · 89 posts · 64 votes
6y

I'm very confused.. 

but paying that 2 million at 700/month would take 238 years to collect it all.  We, and the condo, won't be around anymore.

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    What? I must be missing something here why would you pay $2 million for a $300k condo, I'm sure you have some abstract point, but it just isn't clear.

    1Reply
  • Kevin Chan
    Member since 2019 · 89 posts · 64 votes
    6y

    I'm very confused.. 

    but paying that 2 million at 700/month would take 238 years to collect it all.  We, and the condo, won't be around anymore.

    1Reply
  • Rudy Avila
    OP
    Rental Property Investor · El Monte CA · Member since 2018 · 134 posts · 66 votes
    6y

    Hey guys there are reasons to do these notes to buy property. You are taking control of the property for 10k, and even with that it seems low to me. If you would to your regular FHA loan with 3 percent down you will end up having a monthly total of $1,950 per month. Rents are 1600 (negative cashflow). If you do this note deal monthly total with PITI HOA $1,170 per month. With this you can Cashflow forever, and you only put 10k in a 300k property. BTW this deal would cashflow more the way its used. I just wanted to use Market rates for the example. The 2 million dollar price dont matter. You cashflow now rather than years of making no money. Give me these deals all day. Now I would want to know how in detail a note investor would buy this and rearrange it.

    BTW if you rent now and do this deal, instead of paying $1,600 in rent, you pay $1,170 a month. I would take you just under 2 years you get all your money back and pay $430 less a month after that, forever, no more rent raises. 

    What if you could pull a super super deal and pay note payment of $300 a month not $700, how would your life look like now?;)

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  • Jaret Walker
    Specialist · Crossville, TN · Member since 2018 · 73 posts · 27 votes
    6y

    I must be missing something

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    Give me your $300k property that you have to own outright or this doesn’t work. And in just 428 payments, you’ll have your money with no interest earned. That’s right. I want a 35 year interest free loan. What do you mean you’re not excited? What do you mean you think any time in the first 30 years the buyer can just bail and screw the seller? Well yeah, that’s true,  but you really don’t want $300k today, you want it in 35 years. 
    but I’m willing to pay 2.8% interest for 238 years. Isn’t a high enough interest rate? I mean inflation higher than that sure, but this is a buyer wins seller loses deal, you’re being screwed. Don’t you get it?

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  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    6y

    Use the calculator provided for analysis & repost.

    0Reply
  • Wilson Linder
    Member since 2020 · 19 posts · 4 votes
    6y

    So in this situation, the 2million offer comes out ahead?

    0Reply
  • Rudy Avila
    OP
    Rental Property Investor · El Monte CA · Member since 2018 · 134 posts · 66 votes
    6y

    IMO buyer gets the better end of the deal but the seller doesn't loose. 2 million dollar note on a 300k property thats what the seller gets. You can repackage the note and sell it off. Notes are like play doh ma boi you can make it long and skinny or short and fat. 30k down is more realistic (10% down), but 10k down is not impossible. By the way all real estate investors are note guys. 

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