Hi,
I am a newbie and appreciate some advice.
I have just sign a sales contract on a condo which I plan to buy.Tax access is $28k,sales comps for last year is $33k.
I bought it at $21k.No repairs,all done up by the seller.Is this a bargain?
Question:
I have a timeframe of 30days to close.How do I go about resale the condo within this 30 days? Can i ?
I have no clue how to go about,any help and advice appreciated.
Thanks,
Austin01
Howdy Austin01:
Anytime you can buy property 30% below comps it is a good buy especially if it is already remodeled. Is it a cash deal or did you get seller financing too.
A few ideas to sell it fast are
Check the owners of other units. If they own one they may want more especially if they are not owner occupants. Put a sign in the window front and back. Put a sign in the yard or road median. The HOA may object but you may get that one call you need. Do not be greedy. Maybe price it at $29,900 for a faster sale. You may even wholesale to another investor for $25,000 or so. Be sure you know the rental market so you can tell potential investors what to expect for rent.
One problem: Why did the seller not ask more. What was his motivation to fix it up and then dump it at such a low price. Another caveat: Make sure all taxes and HOA dues are paid and there are no liens or judgements.
Ted,
Thanks for your reply.
I finance it through bank loan.
The seller sells because he is in dire need of money.
If I sell it during this time frame of 30 days before close,how do I go about it since I have sign the S&P?
Is it correct to say that I need to close this purchase deal first then only can I resell it?
Thanks,
There is two ways to sell it before you have to close. You can assign the contract for a small fee up front and let your buyer close or you can sign a contract and do a double closing the same day. Under both ways you do not come up with the money to close but let your buyer pay for the property. This is of course better. You can close if you can within the 30 days and then sell it too.
When selling before you actually own it you need to be able to show the unit to your buyers which means you need to get a key. You can tell the seller what you are doing and be honest or you can ask for the key to let in inspectors, contactors, or tell um that you want to try to lease it out before the closing and need a key. This is kind of up to you.
Hope this gives you an idea how to proceed.
Thank you for your reply.
I have an interested potential buyer. The buyer has no money down but credit history is fine.I plan to sell her
$36,000 then I gave her free $6000 as down payment for her loan of $36,000.That means she loan 80% or $28,800.
So,she buys this condo with no out of pocket money because I pay for her down payment.She only needs to pay her monthly installment to service the loan.
Can this be done?What are the drawback of this method?
Any comment appreciated.
Houdy again Austin01:
I believe I understand that the buyer is getting a new loan for $28,800 from a bank or mortgage company. If that is the case then you will make a profit and there is not a thing wrong with that.
If you are owner financing and not getting cash there could be problems. I’m sure you have seen the little cartoon wher the fat cat cowboy sold for cash and the skinny as a rail cowpoke sold on credit. A dollar today is worth two tomorrow. You may have trouble collecting her payments and have to give her a size 12 boot.
Making a profit on a note is not that bad as long as the buyer has something in the deal to lose if they are forced to default. Good credit helps too of course.
Ted,
Thanks again for your advice.
How do I go about getting the agreeemnt done?
Any sample agreement I can refer to state this kind of arrangement?
I like to sell by owner,no agent,so I need to do it on my own.
Is this complicated?My first time,so kind of learning …
Hope to hear form you.