Posted by Fred on May 12, 2006 at 10:37:18:
Because I work in PHX, Boise and Santa Ana as I manage 25 people - I just can imagine doing a FSBO and telling somebody…“sorry, you can see the house, I’m sitting in Sky Harbor Airport, but I’ll be in town next week for 9 hours”.
How do I find investor to take 60k equity? - Posted by Fred
Posted by Fred on May 11, 2006 at 13:50:21:
What is the best way to find investors to avoid end loan and closing cost and buyers agent fees in new construction in hot area?
If I close on the end loan (3 homes), they hit the MLS in a couple weeks at 450k, 440k and 400k…(2700-3250 SQ FT)…buyers agents around here never seem to cut fees. I will pay like 60k in comissions!
My agent expects these homes to be worth 500k+ within a year due to substantial job growth in our area, population boom, low unemployment…and number one place to do business rankings from Inc and Fortune.
But I am a flipper and dont know enough about the rental market in that price range…I want to pay off my partners on these so my credit is free as a have some other re opportunites in the area that will pay more than holding on to three properties with Joint Ventures.
Any thoughts? Agents tell me that our market is so hot here right now, that even fixers are going for 100% ARV. Our medium home prices are up 24% and 31% in the last year for both counties. But I dont have the time with my fortune 500 job to FSBO. I just dont know where to cash out quickly without “eating it”.
Re: How do I find investor to take 60k equity? - Posted by John Corey
Posted by John Corey on May 11, 2006 at 14:25:57:
Fred,
You need to move from being an amateur to a professional.
You lack knowledge about the rental market. You have little time to deal with a sale hands-on. You have other reasons to sell now rather than wait another year.
You are not eating it when you pay someone to handle all the details for you. At the same time you should be able to negotiate with an agent. Focus on the quality of the service for the price. It might be that for the services offered 6% is a bargain compared to 4.5% with an agent who will not handle things smoothly.
If you job pays you $60K in 45 days for part time effort then focus on the job. If you can take a few hours here and there (half days vacations?) to earn the 60K then maybe it is worth taking some time off (with or without pay).
You have options. Just do not be greedy and definitely assume that much of that 60K is for services that someone has to provide.
BTW - You might be able to higher a lawyer for less if you can find time to deal with the other aspects of the sale.
Also expect that an agent will provide services for free so they get a listing later. Hence look at the total value of the situation and move forward.
Your market appreciation can not continue - simple math. I would not bet on next year being so hot. Hence taking out the cash now and moving to your other deals is likely the right decision given all the other variables in your life.
John Corey
I agree… - Posted by Berno
Posted by Berno on May 12, 2006 at 09:05:02:
If you are looking at 60k with a minimal amouont of time spent, it’s a no-brainer.
As a side note: What in the heck does you working for a Fortune 500 company have to do with anything here? Most people would just state that they didn’t have time due to their full time job. Maybe people who work for a Fortune 500 company rather than other companies have less hours in the day. Not quite sure.