Posted by PBoone on November 21, 2000 at 20:37:08:
Sit down with ALL 4 parties on title to discuss the deal. This sounds fishy. Also check the tax records to see whom is on the deed.
Condo’s are a tough Resale so buy very low. I would max out at 40% of value for cash.
Pat
Desperate seller wants fast out…Now What??? - Posted by JoeNJ
Posted by JoeNJ on November 21, 2000 at 15:19:03:
Hello everyone,
I mentioned this deal earlier and the circumstances are becomming intensified. One of the owners is terminal…
and doesn’t know it. The other owners; his wife, daughter and son in law, want to sell prior to his death ASAP.
4 studio units in a 14 unit condo complex, 1 short block to beach in Atlantic City, NJ
All other units are owner occupied
Rents, 700 per unit
Condo Fee @70 per unit
Comps 25,000 per unit
Tax assessment 30,000 per unit
If I can’t get the money fast, they will list with Realtor.
They are willing to sell FAST for 62,000.
Any help would be appreciated.
Thanks
Joe
What is your goal… - Posted by ken in sc
Posted by ken in sc on November 22, 2000 at 07:39:19:
Do you want cash flow? None here after expenses with $400/mo rent plus $70 regime. Do you want equity? If they are only worth $25K and near the beach, what is wrong with the area? Why are they assessed higher than comps? In my experience, when assessor is higher than comps, it means values are decreasing and the property has not been reassessed in several years and thus the assessment does not reflect market. Be careful you are not buying into a declining market. On the other hand, if values are stable or rising, and you can buy 100K worth of property for 62K, it might be worth looking into. You could then sell to new “Owners” on ls/op and maybe make a buck or two.
Good luck!
Re: Desperate seller wants fast out…Now What??? - Posted by dewCO
Posted by dewCO on November 21, 2000 at 23:28:06:
I don’t like small condo complexes—if there is a special assessment coming down the pike (usually for deferred or extraordinary maintenance) you’ll get hit hard.
ALso sounds strange that the tax assessment is more than you say they are worth,usually it’s the other way around.
IF they are MOTIVATED selelrs they will have a problem for you to solve. What is that problem? You dn’t say what you expecte to do with these units.
Don’t know much about beach property, but never heard of property renting for way more than 1% of the sales price. Usually if units will rent for $750/mo/ they should be worth at least $75,000 each. Never heard of beach property this cheap either, you sure they bring $700/mo.