Well, Here I go jumping off of a cliff! The strongest team members I have are in construction, and so I have found a house in a nearby hilltop city. The builder ran out of funds. Here sits this beautiful half finished house, and I'm preparing my offer. Here is the juicy info. Its a DOUZY of a first deal! If I can do this I will have NO FEAR of doing ANYTHING in RE!
Custom home in higher end area
Comps for same size/beds/ba & area: 1-1.6M
Estimated Construction costs 250-300K (I'm getting a couple of estimates tomorrow. The whole interior needs to be done as well as the exterior coating, rocks and decor, hardscaping, landscaping, and another portion (a mil quarters) still needs to be built (If we choose to do that part, the cost goes up, but the sales price goes way up too). If costs are higher, I will be offering lower.
Holding costs: 15K
Closing costs: 12K
Margin of error: 3%
Profit margin: 150-200K counting on 1.1M sales price.
All the numbers are very conservative with a lot of padding (except my offer price)
No small potatoes. With my business plan and self directed IRA, I plan to make it happen. I'm working out the details of financing with the Tax Club (maybe they'll redeem themselves!) and with a hard money lender and my self directed IRA people.
It is a PREAPPROVED short sale, and the bank wants to see ALL offers. So, what do I have to lose? I'm giving them MY best offer. I'll need a lot of prayer for this one!
If I can do this, I will be able to conquer any fear.
The only thing I am worried about is that it is a higher end property, but I intend to sell it low, and advertise it for 3 months. After all, it will probably take at least 3 months to complete. I'm going to use the auction style method to try to sell it at first. We'll see how it goes, and I'll keep you posted every step of the way.
I feel like a crazy woman right now! LOL
Are there buyers that can afford this? Time to find out! Posting ads right now!
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