Posted by Mark (SDCA) on March 31, 1999 at 09:41:09:
Yes, SDCA does stand for San Diego but these houses are not here. Actually, they are in Las Vegas.
I don’t plan on buying all of them (thought I admit the thought did cross my mind grin). But some of them are simply too large (with correspondingly larger prices). They don’t fit the profile I want to work with. The market for them would be smaller than I like.
As for why I don’t sell conventionally… Why would people buy from me conventionally when they could buy from the bank with 100% financing? All of these ARE already listed with realtors.
I agree about the realtor, and I am trying to educate her as to where I am coming from. And I absolutely do agree that this is a great opportunity. (No problem = retail = no profit. Big problem = big profit = THIS). That is why I am pushing the realtor for more info on area comps and rents.
As for the pricing, I think it is reasonable. There are 3 floor plans (small, medium and large). Most of the houses are of the large size (2700 sq. ft.) and are priced around 175K. I am interested in the small size (1700 sq. ft.) for which the bank is asking 139,900. The only sales in this sub-division for that size are 148, 125 and 132K (but these may have been “sales” to the bank). That seems pretty reasonable for the area and size. (I am guessing that the bank averaged those 3 sales to come up with their 139 asking price). I was thinking of offering somewhere in the low 100s.
Thanks for the input,