Diary of a seven figure spread
This link www.biggerpockets.com/forums/517/topics/101855-ano... will get you to how I negotiated, purchased, rehabbed, and staged a $4.5M luxury estate in CA. Included in this that thread is a new video to see the transformation of an outdated Tudor style property to a beautiful estate.
Originally listed at $3.7M, I was able to negotiate the price down (on several back and forth counter offers) to $2.7M, successfully reducing the price by $1,000.000! In addition to that price reduction, I was also able to negotiate the seller to carry back $2M on a first trust deed at 6% interest! About half the cost that I typically pay in interest saving $10,000 in monthly interest holding costs.
Many people ask me how I find my deals and the answer changes depending on where we are in the market conditions. For this deal, it was listed on the MLS, I found it, performed some due diligence, and brought my preferred agent in to assist in the deal making. In many cases in the luxury market (as well as the regular one), good timing is key.
Had this property been originally listed at anywhere near $3M, it would have gone quickly. Perhaps a lesson (likely unlearned by this listing agent) for agents on the importance of pricing. When you are off by a few hundred thousand, ok, but off by a cool million and you have some issues.
Hi Will, great learning about your deals. It seems you have a senior loan, a mezz piece, and then equity. Where do you get the equity? Do you have equity partners too?
