How to sell your deal

Question

You guys please, please help me out..........i feel so overly whelm....I have my first property under contract and now it almost expire and i'm having a hard time trying to find a buyer for it.....

I new at this whole real estate thing.......please help show me the way to financial and time freedom...... I pushing really hard, but seem to be back in square 1
Thanks A Millions! Khang

Khang Le · Answer

Thanks You so much for all the reply and info....can anyone give me a good deals example that they have....

Maybe i will use that as a guide..

Thanks A Millions! Khang

Jon Holdman · Answer

Also, this number:

Yes, i do have the number for their monthly and yearly income... 
yearly income is about : $125,694

Works out to $344 a night assuming its rented every night of the year.  I don't believe that.  This number seems suspect.  Its still only 1% (monthly average/purchase price) and that's too low to actually generate any cash flow.

This number, on the other hand:

When you have a nightly rental, you pay all the utilities.  People who rent by the night aren't cautious about those.

Insurance.  I'd guess that's at least $5K a year.

Property taxes.   Those alone would be more than this $19K number.

Booking costs.  Someone has to take all those reservations and deal with the tenants.  Guests, really, not tenants.  VRBO isn't free, either.

Snow removal and management.  Its 20 minutes from a ski area.  Guests aren't going to shovel snow and I would guess it gets quite a bit.

Maintenance?  Nothing every breaks?

You mention its 22 minutes to a ski area.  Yawn!  Distances to a ski area work like this:  ski-in, ski-out:  You can get on your skis right out your door and go down to the lift.  And then ski back to your door at the end of the day.  Walkable:  You can walk easily to the lift.  In ski boots.  Though loose snow.  Carrying your skis.  On a bus route:  You can easily walk out to a bus that's set up to take you to the lift.  Driving.  Whether 5 minutes or 30, you still have to get your gear in the car, drive, park (always a hassle, even at the best of areas), and then get your stuff to the lift.

$39 lift tickets is a bargain.  That make me think this is some little local ski hill.  But I think you're talking about Mt. Hood, which lists single tickets at $89.

Jon Holdman · Answer

Khang Le have you ever done a deal like this before?  This is a really specialized sort of deal.  These are the sort of properties that get advertised in fancy little full color brochures and that get mailed directly to prospective buyers.  People who buy million dollar houses don't look for them on craigslist.

I'm guessing, but I suspect you're a new wholesaler.  This guys is desperate to sell and doesn't want to pay the $60,000 in commissions (or more) an agent is going to charge.  He's got you on the hook, but you really have no way to properly market this.

Khang Le · Answer

The property has Mt. view and it 22 minutes to the ski area and 5 to 10 min. to the river, shopping center, hiking trail and is very private.. Anyway
Should i get out of the deal now....my contract is expired in september 4, i feel bad that the owner hasn't been booking his costumers...

Thanks A Millions! Khang

Steve Babiak · Answer

As a cash buyer, I don't look at million dollar properties - my guess is that most others think similarly.  After all, we do this to try to make money.  So have you identified what it is about this property that makes the income from it worth a million?  I think you'll find the income falls far short of the number most investors would like to see.

Oh, nobody yet mentioned outright that sellers often lie and misrepresent things ...  although Dave Meyer seems to be hinting at that for you.

Khang Le · Answer

Yes, i do have the number for their monthly and yearly income...
yearly income is about : $125,694
Yearly expenses: $19,356
I guess i shouldn't show the youtube video..(lol)
The property have been in the family for a long time and it produce great income, but the owner is 86 and looking to retired.
It was list for 1.6 millions....
The owner did say that he get a lot of oversea people that are interested in the property....I post all over craigslist and backpage and postlets.....nothing seem to happen...

Thanks for all the reply...Khang

Dave M. · Answer

Big RED FLAG: the first thing I see when I click on the link to the youtube video is the title stating

Bigfoot~Lodge Private 64 Acre Estate $299nt Special $39 ski tickets!

Have you seen financials to validate the income and expenses for the property? Regardless, if I were considering an investment and saw such a discrepancy I would be very unlikely to rely on anything provided by the seller.

Charles Morgan · Answer

At that price it is difficult to sell something quickly, unless it's in Manhattan.  I would advise creating your own presentation, that one is great for selling nights at a ski lodge but not so good for selling a home.  Are you marketing it as a commercial or residential?  Advertise, advertise, advertise! (nationally and internationally if you can.)

Will Sifert · Answer

What was your original plan? Did you have a buyer in mind that ended up not being interested? Do you have a list of buyers that you contacted and none of them were interested?

Jon Holdman · Answer

No phone numbers in posts, please.

Your pool of buyer's for a property like that is EXTREMELY limited.  Its going to take many months if not years for something like that to move.  You need to advertising it nationally if not internationally.

If its under contract for $1 million and needs nothing, its worth... 1 million.