5 acres hilltop brick home 350K expired realtor listing cma
Free and Clear
Property owner agreed to 275K
Property can be subdivided into 2 more parcel 1acre each
Acres in the area selling for 75K ea.
My Approach.
Offer a sub2. Advertise for investors indicating a 20%equity
Asking 10% of appraised price. Then assign the original offer sub2.
I have no cash and I would like to know if there is a better approach.
What value does the house have. If you can sell 4 different lots at $75000 per lot that would give you a nice profit to sub divide and sell four lots and then sell the house and one acre. Would have to get approval from city ? and pay for survey and other costs up front.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Hi -
If the house is owned “free and clear” which means (to me) no mortgages, then why mess with the Sub 2?
Assuming he’s already agreed to finance the thing, why not just go ahead and work your deal with more standard TREC type paperwork which may be more easily accepted?
If you’re concerned with liability, make sure you cover yourself appropriately.
And as for the subdivision possibilities, a visit with the local planning folks should help clear things up tremendously. In fact, you might want to do that BEFORE you get any deeper into this deal.
Good luck,
Eric C
PS - I am not a Sub2 guy so help me out. Am I missing something as to his proposed strategy? Thanks.
zcortez,
I’ve been slammed lately so haven’t been posting much, but I agree with Eric. There’s no way I’d present a Sub2 to a seller that has a free and clear 300k property. You’ll only scare him off.
And I’d also recommend that you NEVER assign a Sub2 without the seller’s permission. I’ve done one like that, but still don’t want to be anywhere close to testing my CYA docs on that transaction.
What does the seller need right now? It’s been my experience that folks selling free and clears have something in mind for the cash, and it typically doesn’t require the full amount right now.
You’ve got to find out what he wants, what he needs, when he needs it, what he’ll do if he doesn’t get what he wants, etc.
Also, as Eric mentioned, I definitely would not assume parceling out the land will be a slam dunk. There are many issues that can throw a kink into that.