1.2 million ARV neighborhood in Brookhaven tough to find buyer

[Drez Alford]

I currently have a home under contract in Brookhaven that is in a neighborhood FULL of homes that were knocked down with an existing foundation kept,  then built up and square footage expanded.For whatever reason it’s been extremely tough  to find the right buyer for the property. It’s a no brainer that the neighborhood arv is 1.2 million dollars and there’s a comp 4 houses on the same street down that just listed a couple days ago for 1.35 million dollars. I’ve done thorough due diligence on this neighborhood and know for a fact the potential is there. 

An investor would net between $300k-400k if they were to take on this build and add about 2600 sqft. My partner and I were going to do the job ourselves we had the home surveyed, appraised, feasibility study done, inspected , engineering plans drawn and architectural plans drawn however we are short about $120k for purchasing costs. We've already been approved for the construction costs and have already determined costs as well as have a team ready. I've posted in every Facebook group I could find looking for someone to either assign the contract to or to help JV where they bring $60k we bring 60k and then we can split the profits made once the deal is sold. It's either been time wasters of people who act like they have the the money but don't. I've tried calling tons of developers / custom home builders yet they never get back to me.

I feel like for what we are asking and how much profit can be made as well as other as is comps we’ve seen in the neighborhood, the asking price is a great price for someone serious and knows the potential. It’s in the north Druid hills neighborhood by skyland park. I need some help on any other ways I may be not thinking of to market this and get it sold. I’ve also made Craigslist listings and renew them every 48hrs. I’ve sent it to over 600 realtors. Also have downloaded the Houzz app to make attempts as well. Even connected investors however it seems not many investors check on there often as I have people from a month ago who still haven’t  added me back.  If you have recommendations on what else I should try please let me know. 

It’s frustrating to know I have a deal this big of a opportunity on my hands yet seem to be falling short. Any recommendations will help. I’ve also tried pulling a list of cash buyers in the area from realeflow and giving them a call most people just weren’t interested in buying right now. Am I not going hard enough perhaps ? Just doesn’t feel like for a deal like this I would have to do so much work it should sell itself. 

[Andrew Garcia]

Hi @Drez Alford, I do not believe the issue is your lack of trying. You seem to be going plenty hard.

There are a few issues that I have identified.

1. Most buyers do not want to deal with a tear-down and rebuild home.

2. The ARV is on the higher end so most people do not have the capital to take it on or do not want to take on a higher risk.

3. Your email might be going to spam. Try sending it to an agent that you trust and see if it goes to the spam folder or to their inbox.

Here is what I would recommend:

Contact the listing agents that sold those 4 comps on the same street and ask them to get you connected with the investors that flipped those deals. In exchange, give them exclusive listing rights when you sell the property.

Hope this helps! Let me know if I can be of any assistance.