High End Homes
Is there an outlet of investors who buy high end homes for cash? Not take an option just in the hopes of selling it before your time runs out. Is anyone actually buying these things? I am getting them offered to me around 45-55% below appraised value and dont know what to do with them. Please Advise.
Start making connections with mortgage brokers or some relocation RE agents, they might have people that want these properties. Find out what these investors are looking for and then try to pair up the buyer and seller. High end properties might not be the easiest thing to do but you are going to have to find your investors first before you contract any of these properties if you do not or can not close them yourself.[ Edited by mmosher on Date 08/29/2004 ]
How high end are you talking? Like 20-30 million? $250K - $750K?
45-55% discounts and you are having a problem figuring out that there is a crap load of money to be made?
Have you had anybody run some MLS stuff and see what the days on market and what the selling prices are for the comps?
Unless these things are in Najaf I don't see how it would be too hard to find investors to work with you if your returns are really going to be almost 100%!
The high end I am speaking of is usually $8 to $50 million. What I have found that once I have past around $10 mil they are not exactly looking in the MLS for the best schools or neigborhoods. It takes a special end user and a special investor who has the capital and patience to find that end user. Yes you are correct there is a 'crap load' of money here. Are you the right investor Rehabinator?
Okay, now we got the picture. I would consider those estates if urban, or ranches and acreages if you are in rural areas. I don't think you are being offered them at a discount of 45-55 percent. At whatever price they are coming up with to say it is a 50% discount is probably pie in the sky, or memories of the years prior to the Internet bubble. Those types of properties if they are estates are priced at what the market will bear and not much else. I've seen lots of properties sell for lets say 3.5 million and you find out that they started being listed at 4.75 million. That selling price isn't a discount, it is reality of what the house is really worth.
The long and the short, no I have never heard of anybody with that much capital that would waste their time dealing with speculative real estate investing. At that level there are way better investments then throwing it down the drain on what somebody hopes a property will sell for, that's why you only see option type investing at that level. Now if it is raw land, now that is a different matter.