All Forum Posts by: John Sparks

Folks,   I am trying to enter into Gainesville market.   How is 32601?   Basically, I see a lot of 100+ years old properties.  Many a properties were purchased 1/3rd of the price around 2018 and now in the market for 3x of 2018 prices.  How should I be looking at it?

Thanks @Brian Ploszay.   In such a case, they can always say no for extension and it forces me to either go for closing or exit the deal.   Do they have right to cancel?  Wouldn't it be breach of contract?

Hello All -

Put down EMD and entered into PSA. Sellers were highly motivated and had frequent and long time delays in providing documents. Couldn't complete due diligence and so requested extension, sellers agreed in writing. Sent extension agreement and suddenly sellers went mute. No response to calls, emails and texts. A week later, sends cancellation with release to liabilities offering refund of EMD in full.

As buyers, we were highly motivated, put in lot of time, shopped around to get mortgage LoIs, tons of hours studying the property segments, tax exemptions and credits as claimed in OM by sellers.   Even tolerated multiple delays in submission of documents by sellers.   Its close to 3 months of time and resource investments.

PSA has provisions for brokerage and damage claims in case of seller default outside of Force Majeure.  Obviously, as buyers we are super upset.  Especially with the level of patience we have shown due to the interest in this property.

Question to experts in this community :  (a) What would be reasonable damage claim?  (b) In the event sellers refuse to pay, do we have a chance to prevail judgement  and (c) Is it worth fighting this case given the PSA is for a low 7 digit price?

TIA

@Omar Khan,  thanks for your formula as this is exactly the type of info I am looking for.

Looking into the site mentioned by @Matthew Baltzell, the FAQ mentions that property appraiser assess all the properties to 100% of their market value (based on recent sales and other related criteria).    Overall, the formulae holds good.

One of the key things I learned from this analysis is that, the property is currently priced 3.1x county assessed value per the tax records, which by the way is based on last year's sale prices.  Don't know if it is normal for this part of the county to appreciate 3x in just an year.   Any investors/Real Estate agents in this area can help share insights?

Hi John,

I am now looking for the same information.   One of their properties look very interesting but their deal model seem to be aggressive and non-traditional.  They don't accept only cash and no banks.   

Would like to know your experience with them or anyone in this forum had any experience, do share...