I’ve been taught to request 90 days to close in my purchase contracts, but a seller of a significantly undervalued property I am in negotiations with wants to close in only 30 days. I plan to just market the property as a rehabber special and assign it, but if I don’t get any takers, I’ll just round robin auction it. However if the auction doesnt get enough traffic, bids or a high enough sales price, then will 30 days be long enough? Most likely the buyer that I find will want some time to get financing together and go to closing as well, probably 30 days themself.
So what do some of you veterans suggest for a minimum amount of time to close in contracts, to allow enough time to market the property and assign the deal?
I have never done a contract with a 90 day closing date. I don’t want to wait 90 days for money. If the deal is good enough, you should find a buyer in a matter of days. Most buyers, true buyers have everything lined up in 15 days or less.
I’m in the SF BAy Area, CA and the place is a duplex fixer (about 20K repairs needed) valued on zillow by closest comps at 763K and seller thinks the cheapest duplex in that area code is $760K, but I don’t have MLS access to verify. I initially offered 610K, but seller thinks its a bit low and wants to close in 30 days.
In your estimation what would be a good profit on this for me, even though it’s at about 80% of ARV at just 610K? Is there enough of a spread for the investor, for me to make about 20K or better for myself?
Also, would this be attractive enough for me to move within 30 days (including funding time) even though I don’t yet have a buyer list? I ws thinking about just asking seller for some flexibility if I found an investor and needed a close extension.
Any info you could offer would be good, I’m pretty much a newb.