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I’m in preliminary discussions with a lady (and husband) who has a 25 acre estate near a university town. It has a 6/7.5 main house and a small 1/1 care taker/guest house. It’s in a horse area, however is not yet built out as a horse farm.
Asking $1.5 mil to cover a $680k 1st, $270k 2nd, and $550k unrecorded 3rd. Today’s value about $2 mil. Monthly interest only payments are $6700. They are behind x 2 months or about $15k with late fees. She knows they can’t make payments and she has a extended family illness issue which will take her out of the US for over a year. She just wants to cover debt owed. She’s motivated, I’m not so certain with the husband.
The complicating factor is that the husband got his real estate license solely to sell this house so it’s currently listed with a broker. Without the RE broker involvement it’s an obvious, straightforward HBS candidate.
Now my question/strategy: I don’t want to even mention HBS until AFTER I see a release from the RE brokerage. Thoughts out there on how should I proceed?
Thanks,
Hank
Hank
You need to get a lower strike price than $1.5 mi. there’s not enough room in there to make a profit if it is really worth $2 mill
If it is worth $2 mil, you’ll probably sell for $1.5 mil
YOu can surely negotiate a discount with the 3rd. Get an authorization to talk to that person. If you can get them down to $225k ( half), that makes your strike price $1,250,000. Then write it up that the seller will get 50% of anything you sell the house for over that strike price IN LIEU of a commission.
Even at $1,250,000 it’s a tough sell.
You should order a SHORT SELL package from Wells… start that process to reduce the 1st and 2nd.
In this market, your best bet would be an out of country buyer … most likely Brazil or china… both are cash buyers. You could also market to people who subscribe to house lover’s magazines if you can buy that list.
A lot of it depends on the condition of the houses on the property
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