Loan amount
$0
Loan type
Purchase
{Fix&Flip}
After Repair Value
$1
{PP:$0}
ARV
0%
{ARV}
Property type
Single Family
Borrower Details
Credit score
740
Deal experience
300 deals
This loan scenario was submitted by a Broker
No
Property Details
State
California
Loan Details
Down payment
$0
Additional Loan Information
5 bedrooms – 9 bathrooms – 11,616 sqft.
Under contract for $5,150,000
Estimated cost of rehab - $350,000
The subject property was a divorce/foreclosure bank acquisition. The owner who lost the property
owed two adjacent lots, as shown in the picture on the next page. The house is on the subject lot. The
adjacent lot is essentially the oversized back yard for the home. The two lots were taken back by two
different lenders. The current owner of the adjacent lot is asking $2.3mm for the lot, cash offers only.
Attempts were made to negotiate with them for the acquisition of the lot in conjunction with the
acquisition of the house, but with no success.
The subject property is being acquired substantially below market value. The existing lender is fire-
selling the home due to the adversarial nature of the owner of the adjacent lot. It is a unique situation,
and one where cosmetic rehab plus fencing along the lot line will allow for a quick turn with substantial
upside to the purchase price of $5,150,000. The bank that owns the home is not taking a loss on their
original investment at the current sales price, and that seems to satisfy them.
In the immediate area, no home over 7500 sqft. has sold for less than $8.4mm. The median sales price
in this area, sold in the past 6 months is the upper $12mm range.
Under contract for $5,150,000
Estimated cost of rehab - $350,000
The subject property was a divorce/foreclosure bank acquisition. The owner who lost the property
owed two adjacent lots, as shown in the picture on the next page. The house is on the subject lot. The
adjacent lot is essentially the oversized back yard for the home. The two lots were taken back by two
different lenders. The current owner of the adjacent lot is asking $2.3mm for the lot, cash offers only.
Attempts were made to negotiate with them for the acquisition of the lot in conjunction with the
acquisition of the house, but with no success.
The subject property is being acquired substantially below market value. The existing lender is fire-
selling the home due to the adversarial nature of the owner of the adjacent lot. It is a unique situation,
and one where cosmetic rehab plus fencing along the lot line will allow for a quick turn with substantial
upside to the purchase price of $5,150,000. The bank that owns the home is not taking a loss on their
original investment at the current sales price, and that seems to satisfy them.
In the immediate area, no home over 7500 sqft. has sold for less than $8.4mm. The median sales price
in this area, sold in the past 6 months is the upper $12mm range.
Status
Closed
Created
November 24, 2020 - 9:51am
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