Looking for Big Bucks for Real Estate
February 27, 2008
This week I bought a nice little ranch home. It has not been my biggest deal but it will make me a tidy little profit and it gave me an education at the same time. Here is how it went.
This was a bank owned property that the listing agent had a pre-signed contract done prior to it being posted on the MLS.
Fortunately the Bank has a 72 hour rule from listing date before reviewing contracts. Another offer came in through my office (different agent) with a financed offer.
Client has great credit (720 scores), sufficient money down with cash reserves and doing a FHA 203K mortgage with 45 day closing. Contract price was $41,000.
I thought this was a pretty good price as the “As Complete” value is $85-90,000. The 203K repair estimate was $14,000. I wanted the property but I didn’t want to get into a bidding war with a company client.
I decided to put in a “low ball” offer of $37,000 cash. Actually it was coming from a Line of Credit per my “Proof of Funds Letter” and a 30 day closing.
To my surprise the Bank took a cash offer 10% less than a well qualified offer with financing. Does this happen all the time? I am not sure, but as the foreclosure and short sale market starts getting more and more competitive, cash will once again become King!
So whether you are a principle or an agent, finding where you can get a good Buck when you need it should be top on your list. If you are looking in Buffalo or Niagara County for Real Estate financing or sales, give me a call, because in this area “the Buck stops here.”
About the Author:
Wayne Malcomb is the Broker/Owner of Niagara Frontier Funding & Realty, serving both Niagara and Erie counties of Western New York.
Wayne is called upon as the local expert for newspapers and radio shows including his own weekly radio show on WLVL 1340.Wayne follows the theme of Sy Syms, "an educated consumer is our best customer."
When asked what sets his company apart, Wayne said, "We use a combination of technology and one stop shopping to reduce both time and expense per transaction, which saves the average customer $3,200."Do you know anyone who could use an extra $3,200?"
If you need real estate sales or financing information in Western New York call Wayne Malcomb at
800-216-6829 or visit him on the web www.niagarafunding.com.
You can also email wayne at wayne@niagarafunding.com.
Wow!!!!! That’s a killer deal! Below 50%..homerun here Wayne! Good Deal….gonna move this one on the fron page tomorrow..love to talk about deals like this!
The bank representative might have been burned in a previous transaction by a buyer with a “Pre-Approval” letter.
We’ve all seen those pre-approval letters that don’t mean anything.
“Buyer is approved for loan amount provided the credit score, income and assets can be verified” or something to that effect.
The buyer has barely been pre-qualified but the lender will write “Pre-Approved”.
Congrats on a great purchase!