[Calc Review] Help me analyze this deal - good deal?

7 Replies

Hi @James Camp , I found the MLS listing for this property on Realtor.com, and looked up the address in PropStream. I'm showing the last arms-length sale for this property was on 23 Dec 2019 (recorded on 1/15/2020), for $268,000. And now it's listed on the MLS for $68,500? I'm confused why the property is on the market at such a seemingly steep discount.

Its current owner is listed as Growth Developments LLC, which appears to be a "We Buy Homes" business.  It's probably safe to assume the seller is an investor, meaning they likely know what they're doing.  What did they find out in this 6-week timespan (12/23/2019 up to today's date of 2/7/2020) which motivates them to take a $200,000 loss?  I see the neighborhood is, let's say, less than great. But the LLC is based in-town, not out-of-state, so they must have known what part of town they were buying in.

I'd suggest getting really familiar with disclosure laws in Missouri.  Find out everything the seller is required to tell you, and what they're not required to tell you as well.

I'm currently an aspiring (i.e. not experienced) investor, so bear that in mind. I might be totally wrong about the whole thing, and / or mis-reading the transaction history in PropStream. Or maybe the PropStream data itself is less-than-accurate. Either way, make sure you have a local team in place (realtor, property manager, etc.) to advise you on this property. Seems like there could be some sharp edges here.


Originally posted by @Richie Thomas :

Hi @James Camp, I found the MLS listing for this property on Realtor.com, and looked up the address in PropStream. I'm showing the last arms-length sale for this property was on 23 Dec 2019 (recorded on 1/15/2020), for $268,000. And now it's listed on the MLS for $68,500? I'm confused why the property is on the market at such a seemingly steep discount.

Its current owner is listed as Growth Developments LLC, which appears to be a "We Buy Homes" business.  It's probably safe to assume the seller is an investor, meaning they likely know what they're doing.  What did they find out in this 6-week timespan (12/23/2019 up to today's date of 2/7/2020) which motivates them to take a $200,000 loss?  I see the neighborhood is, let's say, less than great. But the LLC is based in-town, not out-of-state, so they must have known what part of town they were buying in.

I'd suggest getting really familiar with disclosure laws in Missouri.  Find out everything the seller is required to tell you, and what they're not required to tell you as well.

I'm currently an aspiring (i.e. not experienced) investor, so bear that in mind.  I might be totally wrong about the whole thing, and / or mis-reading the transaction history in PropStream.  Or maybe the PropStream data itself is less-than-accurate.  Either way, make sure you have a local team in place (realtor, property manager, etc.) to advise you on this property.  Seems like there could be some sharp edges here.

 VERY curious about the prop stream thing. I cant FATHOM the house being worth that much in that area at all. Anyway for you to share that with me! Very useful feedback!

Originally posted by @Richie Thomas :

Hi @James Camp, I found the MLS listing for this property on Realtor.com, and looked up the address in PropStream. I'm showing the last arms-length sale for this property was on 23 Dec 2019 (recorded on 1/15/2020), for $268,000. And now it's listed on the MLS for $68,500? I'm confused why the property is on the market at such a seemingly steep discount.

Its current owner is listed as Growth Developments LLC, which appears to be a "We Buy Homes" business.  It's probably safe to assume the seller is an investor, meaning they likely know what they're doing.  What did they find out in this 6-week timespan (12/23/2019 up to today's date of 2/7/2020) which motivates them to take a $200,000 loss?  I see the neighborhood is, let's say, less than great. But the LLC is based in-town, not out-of-state, so they must have known what part of town they were buying in.

I'd suggest getting really familiar with disclosure laws in Missouri.  Find out everything the seller is required to tell you, and what they're not required to tell you as well.

I'm currently an aspiring (i.e. not experienced) investor, so bear that in mind.  I might be totally wrong about the whole thing, and / or mis-reading the transaction history in PropStream.  Or maybe the PropStream data itself is less-than-accurate.  Either way, make sure you have a local team in place (realtor, property manager, etc.) to advise you on this property.  Seems like there could be some sharp edges here.

realized that its being sold by a wholesaler, and they bought sevearl houses in a package :)