Great opportunity - Posted by Brad

Posted by zinzi on April 04, 2007 at 23:32:14:

If it is only 60% complete and almost being foreclosed on I think it would be a perfect one to do a shortsale on. The Lender that has the construction loan knows they would have to complete it before they can sell it and therefore hold non-performing paper for a minimum of 4 months plus the time it will take to actually go through the foreclosure process. My guess is the Lender does not want to hold that paper for the next 7-9 months.

You did not say what market you are in either, but if you pay $1m for an incomplete property that will be worth only $1.47m upon completion you don’t have a great spread there especially if you count the cost to complete it and the carrying cost before you sell it.
Just my 2 cents worth.
Best regards.

Great opportunity - Posted by Brad

Posted by Brad on April 03, 2007 at 09:44:37:

I am a builder but have come across a home that is being built that is about to be foreclosed on. The home is approx 60% complete and can be completed in 4 months. I am in the need of 1 million dollars to buy out the debt and complete the house. The appraised value of the home is 1.47 million. It would be 75% AAR. Does anyone have an idea for the financing on this deal? I have a 661 middle and have been building for almost 2 years.

Re: Great opportunity - Posted by josh

Posted by josh on April 08, 2007 at 07:09:12:

Where is this house located?