QueensKiddd
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- Oct 5, 2008
- 21
- 3
To start off, let me explain a little about my background. I'm an equity trader at a hedge fund. I've done very well in the last couple of years, and I'm looking to put some of my cash to work in alternative investments.
I've been negotiating with banks over the past 6 months, and I've been able to get in some great offers on short sale properties in Palm Beach, Florida. My goal is to purchase these properties (mostly condos) directly from banks at well below market value by offering 100% cash for them. Since condo mortgages are extremely difficult to obtain in Florida, I was thinking I could take these properties and immediately flip them at/or above the current market value by offering my own financing option to buyers.
As an example: Lets say I purchase a water front luxury condominium for $150,000, while the current market value is conservatively $200,000. I then immediately put the condo back up for sale at $200,000 by offering perspective buyers a 5% fixed rate 30 year mortgage. All I will require from a buyer is that they pay me a minimum 10% deposit.
I think this would be a win-win situation. I'd be selling the property for higher than what I paid for it, and I'd also be collecting interest on the market value of it.
I'm still trying to figure out if this is a good idea to pursue. If anybody has any advice, suggestions, or comments for me I'd really appreciate it. Thanks.
I've been negotiating with banks over the past 6 months, and I've been able to get in some great offers on short sale properties in Palm Beach, Florida. My goal is to purchase these properties (mostly condos) directly from banks at well below market value by offering 100% cash for them. Since condo mortgages are extremely difficult to obtain in Florida, I was thinking I could take these properties and immediately flip them at/or above the current market value by offering my own financing option to buyers.
As an example: Lets say I purchase a water front luxury condominium for $150,000, while the current market value is conservatively $200,000. I then immediately put the condo back up for sale at $200,000 by offering perspective buyers a 5% fixed rate 30 year mortgage. All I will require from a buyer is that they pay me a minimum 10% deposit.
I think this would be a win-win situation. I'd be selling the property for higher than what I paid for it, and I'd also be collecting interest on the market value of it.
I'm still trying to figure out if this is a good idea to pursue. If anybody has any advice, suggestions, or comments for me I'd really appreciate it. Thanks.
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