update on previous thread I started

[Rich Weese]

I think this is the correct category for this thread. If not,  please go ahead and move it, Josh.

Several months ago, I placed a thread explaining I was getting ready to sell a 152 unit building in the Dallas area of Texas.  I received 11 inquiries that had bigger pockets as their base. I received several actual offers to purchase, but the potential buyers had been trained well on bigger pockets and were looking for an extreme discount. I even received one offer that was $4 million less than my asking price?

I am posting this as an educational opportunity for those that think they have to always pay a listing commission.

I advertised the property with the following information given to anyone interested:

I have received a request from you for information on the apartment building I own in Garland, Texas I will be selling. I am in the process of preparing all the paperwork that would be necessary for a purchaser to make a first round study of the property. There has been an immense amount of interest in property located in the Dallas area. I am not interested in listing with a single brokerage at this time.

There are plans to notify each contact that has shown interest in purchasing Texas property from me. I plan on using the website, bigger pockets.com as one of those avenues. If you check for my biography on that website, you will find two different e-mail addresses. I may also be contacted at one of those two addresses. The second addresses is for my book only.

My plans at the current time are to offer a one party listing good for 15 days. I plan to pay a commission or give a credit of 1.5%.  The asking price will be approximately $58,000 per door  or approximately $9 million. I will require nonrefundable earnest money. I will not be doing a 1031 exchange on my side, but will cooperate with the buyer that might be coming out of a 1031 exchange. I have owned the property for seven years and can verify $1,500,000 in capital expenses. This includes new roofs on all buildings, 50% new heating, air conditioning units, partial asphalt replacement, etc.

If I am not able to secure an offer in this fashion, I will then select a real estate company to list the property.. If this sounds of interest to you, please notify me with your contact information and I will keep you posted on progress. 

Thank you.

rich Weese

the first offer I received was at an offering price of $8,800,000 on the terms I had requested. The buyer did not approve the walk-through and this deal fell through. I actually had two back up offers in the amount of $8,750,000, also on the terms I had requested with $50,000 nonrefundable earnest money on offering date, followed up by an additional $150,000 nonrefundable earnest money at the conclusion of due diligence. the agent did agreed to a 1 1/2% commission or $131,250.

This property closed on Wednesday, July 5. I had purchased this property for $4,375,000 with 30% down. I have collected slightly over $1,900,000 in cash flow. The loan payoff was $2,600,000. I think anyone can calculate the cash returned on that down payment.

I consider this a success story and there were three different buyers trying to purchase this building and make it their own success story.

I want to thank bigger pockets for all the interest that was generated from this website. Bigger pockets is great and so is the state of Texas for real estate!

Have a great day. I go on a 20 day cruise with my wife on Wednesday to celebrate this event.

rich Weese