So I am working with a seller who has several historical houses for sale. I did a little research and found out he owns 8 properties in this one county alone. Right now we are working to purchase 3. And also open to assigning it as well.
One is very dynamic. It is zoned commercial and has 3 business's operating out of it. The 4th unit will be rented shortly. Currently cash-flows about 2K a month. I was impressed with the craftsman-ship its been completely restored/renovated with new fixtures and improvements. He is asking 225K. Now I am not a professional appraiser but from my opinion the value is definately there. Only problem is the fact that it's a commercial property and its a historical home websites like zillow.com do not give accurate information about the value so I have to find another way to prove the value to an investor without paying appraisal costs.
Second deal is another historical home that has a full fledged daycare operating out of it. This business is flourishing and has an excellent reputation. Has been operating for many years and do not see it going anywhere anytime soon. Currently rents for about 3K per month. The last home is rented to a Doctor. He lives in the top portion and works out of the bottom. There is no price for this one he just said make him an offer. I am thinking about trying to calculate a value for all three and market them to an investor at an additional discount. See he doesn't owe much on them but he still wants to sell at a somewhat reasonable price to get what he invested back in them. He renovates and restores historical homes professionally himself and he put a lot of work into them all. He also is aware that whoever purchases them will have the cash flow as well as the equity. But I was thinking outside of the box and wanted to create a way to get him to discount them further. His motivation for selling the homes is debt! He has a lot of debt and wants to cut it down. So I thought for example an investor who chose to purchase all three would get an additional 25% off. So if all three homes totaled to about $500,000 for example and I could bring him an offer for all three I could negotiate the price down to a total of about $475K (or more) that way I can let him know hey don't look at the price you are selling them at think of all the debt you will be reducing!!! And he could see it in a different light. And it would be a WIN/WIN for everyone.
Any additional information or feedback on this would be appreciated. Or anyone who is interested in learning more about the homes let me know. Thanks everybody!
So I am working with a seller who has several historical houses for sale. I did a little research and found out he owns 8 properties in this one county alone. Right now we are working to purchase 3. And also open to assigning it as well.
One is very dynamic. It is zoned commercial and has 3 business's operating out of it. The 4th unit will be rented shortly. Currently cash-flows about 2K a month. I was impressed with the craftsman-ship its been completely restored/renovated with new fixtures and improvements. He is asking 225K. Now I am not a professional appraiser but from my opinion the value is definately there. Only problem is the fact that it's a commercial property and its a historical home websites like zillow.com do not give accurate information about the value so I have to find another way to prove the value to an investor without paying appraisal costs.
Second deal is another historical home that has a full fledged daycare operating out of it. This business is flourishing and has an excellent reputation. Has been operating for many years and do not see it going anywhere anytime soon. Currently rents for about 3K per month. The last home is rented to a Doctor. He lives in the top portion and works out of the bottom. There is no price for this one he just said make him an offer. I am thinking about trying to calculate a value for all three and market them to an investor at an additional discount. See he doesn't owe much on them but he still wants to sell at a somewhat reasonable price to get what he invested back in them. He renovates and restores historical homes professionally himself and he put a lot of work into them all. He also is aware that whoever purchases them will have the cash flow as well as the equity. But I was thinking outside of the box and wanted to create a way to get him to discount them further. His motivation for selling the homes is debt! He has a lot of debt and wants to cut it down. So I thought for example an investor who chose to purchase all three would get an additional 25% off. So if all three homes totaled to about $500,000 for example and I could bring him an offer for all three I could negotiate the price down to a total of about $475K (or more) that way I can let him know hey don't look at the price you are selling them at think of all the debt you will be reducing!!! And he could see it in a different light. And it would be a WIN/WIN for everyone.
Any additional information or feedback on this would be appreciated. Or anyone who is interested in learning more about the homes let me know. Thanks everybody!
Melina Thomas
www.gogeorgia.vpweb.com