Buying At Asking Price.
Has anyone ever considered as an alternative to buying at wholesale to flip to investors, possibly buying at close to asking price and selling for just above FMV. My reason for asking is this- I contacted a FSBO who listed a property for $239,000, the townhouse is located in a highclass PGA golf village here in Port St. Lucie. The owner told me that she did not like my cash or my L/O scenario and was perfectly fine paying two mortgages- I know what you are thinking- why did you call her in the first place she was obviously not motivated! And to make matters worse she only came down to $235,000 if I paid cash with a quick closing. I called her because she was a FSBO.
Which brings me to this, since homes and condo villas in that area will easily be priced and sold at $250-$300K, would it have been feasible to place under contract for $235K or if possible $200K ask for the longest closing term possible say 60-90days, with $50 mnthly payments to keep the contract extended and list the property with my agent for $250-$260K to a retail buyer.
Sorry so lengthy, but I just hate loosing out on a good property and thought htis would be a good way to buy high value properties.[ Edited by wmwealth on Date 05/13/2004 ]
Unless you can take on the payments, I'd stick with an option to purchase and market through your agent. If it needs paint or something small to make it sell, you can try to get her to pay for the repairs and up your price to her.
There isn't enough profit in it, that I can see, unless you can get over $260K.
Good luck
Peter
I f I were to do anything, I would just do a 60 or 90 day purchase agreement, and market the property. As an investor, I can't see enough profit in the deal to make it worthwhile. I definately don't see you flipping this property. Sorry that I couldn't be more help.
Legally you can't list a property for sale with an agent, when you haven't closed / are not the legal owner.
yes, you are correct, but why would you want to list with an agent?
Thanks guys I think I answered my own question, I guess what I would have been doing would be a purchase option. I did not intend to sell to an investor, but look for a buyer who would like to purchase at a lower price than FMV-example: purchase option at 200K, find a buyer at 220K.FMV $240,000 At this point I would excercise my option at 200K with the seller. This is not a rehab and needs no repair, these are FSBO in upscale neighborhoods so I think for me that is a pretty decent profit. I guess if I can't use an agent, I can market the property myself correct? [ Edited by wmwealth on Date 05/13/2004 ]
yes, that would be the way to go
Thanks Miraclehomes, and others who posted replies.[ Edited by wmwealth on Date 05/14/2004 ]