The million dollar napkin deal - HELP!! - Posted by Michael Murray
Posted by Michael Murray on May 30, 1999 at 19:35:44:
The other day I got wind of the deal of the decade and dashed over there to try to tie it up. Now I am panicked. Here’s how it went.
I heard of a private showing, going down in about two hours, for Realtors only, of a huge 8000 sf house to be sacrificed at $1,000,000 in a critically urgent situation. This house is brand new, never been lived in, and was built as a corporate retreat by a company who is now desperate to unload it because they ran into business problems just as the house was being completed. According to the Realtor, the house should appraise for about 1.5 million dollars. I asked if I could come to the private showing as his guest. He allowed that I could if I kept out of his way as he wheeled and dealed with the other Realtors. I arrived at the house before anyone else and walked right in since there were still workmen there. I had enough time to thoroughly explore the immense, cavernous structure. Each time I thought I had seen it all, I discovered another set of rooms, apartments, swimming pool with swim-up wet bar, video center, children’s theater, caretaker’s quarters, etc. It was so new, there were still wet paint signs around. I greeted the listing Realtor, who, having just arrived, was setting up open house signs. I asked if he had brought a sales contract with him, he said no that this was just a private showing to Realtors. I pressed him into creating an offer/contract on some pieces of paper which we found. He did have an old contract with him, all filled out for some other deal, so we used that as a model and wrote the danged thing up right there. I gave him a $50,000 earnest money check and walked away just as the other Realtors were arriving. The offer was accepted before the day was over and I now have that gorgeous house under contract for $600k.
Now what do I do??? Does anyone on this board know who will make a quick 65% (maybe lower) LTV loan for $650,000 on equity only, without appraisal or credit check? With the holiday eating up part of my time, I only have a few days left to commit or the deal is off. If you would like to offer suggestions or email me privately, I will certainly appreciate it.