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If you’re new to creative real estate investing, you may be tempted to avoid high dollar properties. But you should not! There’s an easy way to play in the million-dollar house market while also eliminating risks. A solution is an OPTION! With an Option, you can CONTROL the property but you don’t have to buy it. Options work in all price range houses.
You get a call from an owner with a $4,500,000 house on the water in Florida. The comps support this price but they are more than a year old. He designed and built his dream house but for many different reasons, he never moved in. He has $2,000,000 cash invested in the house and land and would be happy to just get his cashback. A profit is not important. He currently has a house sitter living in the house (with their fancy furniture) who is only paying $900 a month which is enough to cover the HOA fees in this fancy neighborhood.
There have not been many sales in the over $2,000,000 range in this area in the last year. He had the house listed with one agent for 6 months but no bites. Then he listed with a different agent for 6 months but only had one showing.
He really needs to get $2,000,000 as fast as possible.
What would you do??
Hi Jackie!
Would love to have a take on this!
This would be great to get an option on it $2M and do a Highest Bidder Sale that allows you to get anything over $2M.
Start bit Low maybe $1.7M, tell close neighbors and get traction for people to be interested.
Highest Bidder sale on Highest Down payment too could work!
-Manny
If I did the HBS, What Would I do To Attract Deep-pocket Cash Buyers?
1) SEND PRESS RELEASE TO INTERNATIONAL Buyers!!! Have Them bid up the price!! See International cash buyers in FL and let them know you have the best deal of 2021!
2) Send letter to surrounding property owners that paid more than $2M and tell them its an exclusive sale to neighbors first before hitting everyone else.
3) Get A List of Cash Buyers over $1M in that recently bought in that area and let them know you have a deal starting at $1.7M and have them bid against themselves.
4) “Cheapest Mansion of the New Year!” sign on the weekend day of HBS.
“Worth $4.5M ON SALE FOR $1.5M. OWNER WANTS OUT!”5) Contact 1031 exchanges in case someone wealthy need to use for primary home until market improves so they can get the gains tax exempt after 2 years living.
Would love to know what you did Jackie!!!
-Manny
As promised, this is how I got this deal and what happened
I bought a list from Experian of people who own homes > $1,000,000 but were behind on at least 2 credit card payments.
I created a fancy website targeting “luxury” homes and also created a fancy 4 color postcard to send out.
This list is not an exact list, as they will tell you, but it did get a lot of inquires all over the US. You can also target one state if you don’t want to travel.I got an option with no money down ( my consideration was the marketing I’d do for a Highest Bidder Sale)
I did a Highest Bidder Sale and it was a total BOMB! The tenant did not want to give up living in a $4 million dollar house for $900 a month so he did everything he could to sabotage the sale and told prospects there were all kinds of problems with the house.
I told the owner I’d try again but only if the tenant was out of the house. So, the tenant moved out and 60 days later I sold the house for a very nice profit.
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