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Updated about 18 years ago, 11/03/2006

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Million $ property I'm trying to work out

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You would know the first project I can really sink my teeth in has to be a huge one. HELP HELP HELP!!!!

an appraiser on the local zoning board has talked of this property being approx million dollar property. The reinstatement is $31k. The current mtg amount is $560k. It appraised for $770k 2 years ago. Property by a golf course. 13 acres a 30 year old house with inside pool, and a large "out bldg". All tolled 11k square feet.

All I can think, is try to "pitch" the property to a few developers, or developers/builders in the area and hope one of them will offer a good deal. The problem is that it's not a big metroplex, and that kind of money isn't everywhere.

Any suggestions???????????

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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
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Do your homework! If your numbers are good and the property doesn't need too much work, you could take the risk, assuming you can handle to financial part of the deal. If you can't handle it financially, get the deal under contract and put together a package with all of your research and bust your butt to find someone that will listen. If you truly have a great deal, someone will jump in with you. If you don't, you will be out of luck.

The numbers you present here are fine, but there is probably more to this story - dig into the details, but do it quick so that if it truly is a great deal no one else grabs it.

Where is the property?

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I agree with Bryan on this one. Do the research and if nothing else, you will be much more educated. Chase down every side of it and ask every question that comes to your mind. The only stupid question is the one you don't ask and in real estate, it could cost you a ton.

Spend your time doing intense study on as many deals as you can and you will be more educated and better equipped for every deal thereafter, if not a little bit of money.

If you would like to talk further, shoot me an email. I would love to help in any way I can.

[email protected]

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Yes, It is under contract. I have a friend that's been doing this for 2 years, he told me to do that.

Property is located at 2145 Golf Course Rd Pell City, AL 35178. Parcel # is 2904181000007000. If you go to http://www.emapsplus.com/ALStClair/maps/
Then, to the left, click the button that says "parcel number". Then type in "2904181000007000" and click search. You can then view the plot. Your computer will have to have java for the website to work.

This property is right next to a 9 hole golf course. Remember, all necessary facilities are available to the property: Gas, Alabama Power (not a cooperative), Cable, City water etc. (City sewer is being debated.) And, it is flat land (with a slight grade toward the road) and readily developable.

I'm currently waiting on a couple entities to offer. The foreclosure is scheduled for Mar 21st. I'm currently putting together a short sale offer for the mortgage co. I've taken 70 pictures of property defects to assist me in demonstrating repair work needed on the existing structure.

If the money people make an offer, the shortsale process will already be started.

What you think?

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You both mentioned "do the numbers" and "do the research". I'm assuming you are talking about putting together what it's going to cost to build houses, build roads, run utilities in, etc. - right?

Any ideas on how to get builders to provide numbers that I can take to some investors, without paying them anything yet?

The one or two I've talked to so far do not want to tie themselves down to "cost per square", so it's been hard to get anything more than a wild number of approx $150k for a 1700 to 2000 sq new home built.

How could I get a resale figure...I guess, call realtor's in the area and ask going price for houses in that size currently?

I'm open for suggestions.

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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
Replied

Can the existing house be saved? It sounds like a huge home that would have some value in it. One option would be to find a money partner to help with the funds to get this property before the auction on the 21st. You could propose to fix the property and subdivide off a good portion of the land for future development. If you could fix the property and resell it for at least all of the costs into the deal then you could have the rest of the land for free to then talk to developers about putting up some more homes or whatever. Is that possible?

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Pro Habber: I could email you a few pics of the house, and property.
It's indeed a big house, although its just a 3 bdrm 3 bath, with a few extra rooms, ad good size den, double chininey, 2 "great rooms", one long skinny room the guy used to work out of his home in, a small room with no known designation, and a little workshop room....of course the room where the indoor pool is located. The kitchen would be great in a low end rental, but not in a house of this cost. The kitchen layout is wrong, and not open and airey like high end houses these days. Id join the dinette, and kitchen with a bar, and re doo the kitchen. The house still has the old pukey green carpet that was probably in it new 30 years ago...yes stains and all. The roof shingles could use some help. The house could be turned around and be great. One developer I talked to though, was struggling with the thought of only 13 acres, and buldozing the house, to get land for more than one house, etc. A house that size, with out bldgs and all, would definately stick out if some 2000 sq ft homes were built around it.
I don't think you could simply fix the house...sell it....and have the rest of the land "free". Yes, the thought is to sub divide off the land, and build more houses, and fix the existing structure, but the money partner would be needed. I cant float enough money to: buy it for $560k, then pay payments while building is going on..., pay for houses to be built, roads built, utilities run, etc.
But at the end - I anticipate that a good chunk could be made when all is sold off, and profits divided.
The challenge here is FINDING the money backing in the short time period. And being able to formulate somewhat hard numbers for money backing to make a decision on.
I'd welcome suggestions on that for sure

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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
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Bryan Casteel
  • Real Estate Agent
  • Cincinnati, OH
Replied

I thought you only needed $31K to save the house from foreclosure. Then you would have to make payments on the loan. If you spent $40K on removing the house and other design expenses for the land, your cost per acre would be $46K [($560K + $40K) / 13 acres]. Is it a good deal to have the land for $46K per acre? If you divided it into 10 one acre lots (the other 3 acres would go to roads and dead space) and spent the money on the designs, roads, etc. could you sell the lots for enough to make at least 30% profit? This way you would do the land development and allow the builders to build and sell the houses?

You have to talk with a smaller developer. The one you talked to is only used to dealing with 50 acres and up. They usually get excited when there is over 100 acres.

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I have the resources to help you out and get the job done, let's just
stop talking about it.

email me at [email protected]

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You guys aren't doing your research.. that "million dollar property" is not worth 300k. I've inspected it, taken about a hundred photos and I can say with a degree of certainty, it's a headache. Citifinancial has been try sell it through a local realtor for most of 2006. They started at $384,900 on 4/18/2006 and when the property listing expired on 9/18/2006, the price was $364,900.

Here's the URL:

[size=9]http://bhammls.net/BAARReports/ListitLib/report_builder.aspx?category=&report=members_full_prop1&mls_acct=1296639[/size]

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Originally posted by "rreggie":
You guys aren't doing your research.. that "million dollar property" is not worth 300k. I've inspected it, taken about a hundred photos and I can say with a degree of certainty, it's a headache. Citifinancial has been try sell it through a local realtor for most of 2006. They started at $384,900 on 4/18/2006 and when the property listing expired on 9/18/2006, the price was $364,900.

Here's the URL:

[size=9]http://bhammls.net/BAARReports/ListitLib/report_builder.aspx?category=&report=members_full_prop1&mls_acct=1296639[/size]


Wow, $364k is nearly a million right? :lol:

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Hello Investors, wanted to bring you up-to-date on the property in Pell City Alabama. Colsing occured on 10/30/2006... final price $306,000.

Click the link a couple posts back and scroll down to the bottom of the page for closing information.

That was $6k more than I estimated it would go for.

If it helps a few of you out, I can evaluate Alabama properties (a cursory, visual inspection of the property with digital photos) for a SMALL fee. Been doing this for 20 years, haven't missed the mark but a few times.

Later,
/reggie