Deal In Tennessee
I have 40 patio home lots and 20 town home lots that I need to let go. Also I have 15 new homes only 2 have been lived in for sale in bulk purchase. The deal can be purchased together or the homes and lots seperate.3.5 million together. 1.55 for the lots valued at 2.7 million in recent appraisal. The homes are on the market for 2.9 million as of right know. 2 million for the homes at bulk purchase maybe lower.
where are they in Tn....CWal
It is in the Middle Tennesse area around Murfreesboro and Shelbyville. The lots and homes are in 2 different subdivisions.
you do know that you can list those properties here for free...check it out under "properties"...are the houses located in Rutherford county...and are they listed in mls...regards, CWal
on some auctions you can extend the 30 day close.
Credit card, signature loan, etc. or a JV partner can be the source of the down.
Well that is MUCH different.
Due your due dilligence. Have it inspected, appraised, etc., so you know what you are dealing with ahead of time. I think if all turns out well and your financing is in order, you should have no problem. Call your bank and make sure they can close in 30 days and ask what they would need.
I did plan on due dilligence but I need more info on possible pitfalls on buying at an auction.
Reminder: The lender is willing to apporive me for my highest bid before the auction WITH CONDITIONS. If one of those conditions is not met, then I lose my $40,000 down money.
Other than an appraisal, what are the conditions?
Your Pitfall #1 is not a problem-- you are going to have a contract the day of the auction. No contract no EM.
More likely problem: Fails to appraise. You might want to go back to your lender, ask who they would use for an appraiser, go ahead and pay for the appraisal and get it before the auction. Then your risk here is minimal (though you do have the cost of the appraisal out of pocket-- no system is perfect).
DOES THE DEPOSIT BECOME NON-REFUNDABLE at the auction, or after you bid and win?
Charging 10% to bid is outrageous!.
Is that even legal?
How much time is required to perform the due diligence?[ Edited by cjmazur on Date 11/25/2008 ]
When you WIN the bid, you must put 10% down which is non-refundable.
the auction is December 16th, 2008. -Tony
tony17112acst, it sounds like the owner has employed an inefficient method for disposing of this asset. Especially in this tight money environment. But this sale method is probably better an eventual courthouse sale (assuming this is the ultimate outcome?) where there are generally no inspections of the property. I would tell the owner or his rep that his terms are unreasonable for this environment. Then I would hand him your offer.
One thing I have seen -- the property owner defines and places a low opening bid on a parcel, then collects purchase offers on the parcel for X days. After X days, there may be, lets say, 3 offers. Then the owner goes to the three bidders to get their "best and final" offer. The owner selects the best one. Some bank REOs end up this way. I have bought two or three this way over the years. On BAFOs I generally (like wsmann) use cash offers (w/o the biggest contingency of all, the financing contingency), quick (7 day) close, and drop the price a little. Quick, simple, cash offers trump absolute price from my experience.
Tony:
What part of as is where is with all faults and no warantee other than clear title by deed, do you not understand?
The seller has pre-paid thousands of dollars in auction entry fees for advertising, promotion and production of their auction event.
When selling at auction there simply is no room for any contingencies other than those related to the seller delivering a clear title by deed.
On the other hand, as a full time real estate auctioneer I can tell you that the auction company will work with you to get you whatever the lender needs to close the deal.
They will usually extend the closing if there is a legitimate reason such as the lenders underwriting taking a little longer than expected.
If you do not close you will lose your deposit.
Remember: Auctioneers are in business to sell the property not to keep deposits. We will keep a bidders deposit if they default but we will also work with them to get everything they need to close the deal, including the sellers cooperation in extending a closing date.
We usually provide a certified home inspection report prior to the auction to help "qualify" the property. Appraisals are a waste of money for auctioneers because there is no better appraisal than the auction itself.
Have your financing lined up in advance is the best advice I can give to anyone who is considering buying real estate at auction.
How real is the 270 price?
How about shopping for a lender not enforcing the loan limit (many people have discussed this) getting a private money mortgage in that 10% range?
CMAs are just a indication where as an appraisal is what a lender would look for.
Can you "give" it to someone in the family as an exception to the loan limit?
Good luck.
All over the place.
Wireless facility in OR
Retail in CA
Wireless in CA
historic retail in CA.
Where every I can find a deal, investors and perform reasonable due diligence.
Have you sold this yet?
Have you looked into trading or swapping properties? From what I have read this is becoming a lot more popular these days with the difficulty of the credit markets...
I would check out the following:
what they paid for it / own on it
free management fees for x-months as a per to buy
is this a condo and is he a own in the project/management
what the comps are
would they be willing to carry back a note
etc.
This should qualify for a SBA loan. As I recall there are some perks as part of the Stimulus package.
as far as grants I doubt it, but do some web searching.
Talk to a local bank about an SBA 504 loan. 10% down 20 year term. Must be owner-occupied space.