Our beach is like Broadway in New York City. That’s where you can run into people you know. I try to walk home from my office at least once a week. It is a 4.2 mile walk on the beach and I like it. I thought that I could do it every day, but I walk barefoot and my feet need rest.
A few days ago I met a retiree, who is always asking me about real estate. He is one of those “paper” investors, who has the money, but not the courage to do it. He is always surprised how others buy real estate. It is either going up and it is risky, so he does not buy, or it is going down and he is not sure it would ever go back, so, again, he is not buying.
So, when he asked me about real estate market in Daytona Beach area, I told him that my clients among other things are flipping condo-hotel units.
He was shocked. From what he reads this is not the market to flip anything. I am lucky, I do not read what he reads, so I am flipping for my clients.
- No, you can’t flip in this market.
Well, consider ignorance a bliss… Not only I can, I do flip for my clients.
My last just happened a bit more than a week ago. I received a call from someone I do not know. He said that he Googled this condo-hotel in Daytona Beach Shores, and saw that I sell most ot he units there. He told me that he is getting a unit from the Lender, and is looking to flip it at great price, but he needs to sell it within less than a week.
It was not listed, he just wanted a quick deal. I figured that this was a deal where he does a simultaneous closing or gets it assigned, and walks away with the difference.
He told me how much he wanted, and it was an excellent price. But still not for a sale within a few days for cash. I told him that I would have the buyer, if he knocks down the price a little bit more. We went back and forth and agreed on the price. At that time I did not even have a buyer. I work with several investors, and they all have their priorities, so I knew I would get a buyer, I just did not know who it was going to be.
Couple of calls, and I put together the offer, sent it to the gentleman who called me, and in 3 days we closed. When I received the HUD, it had his company name, he somehow got the Lender assign it to his company.
I told my guy that this might have to wait until late spring as the market is slowing down now. He would rather resell it now, but if he had to wait, so be it. The very first day after closing I received a call from a gentleman in South America, who not only Googled the property, but then called the resort and asked them all sort of questions, including whether they knew me and could recommend me. They did. He was calling about a different unit, but we put it under contract already, so he was late with it.
After talking to him on the phone, I gave him all the available options and this unit was one of them. I then e-mailed him all the units for sale, and all other information to help him make an informed decision. It included by blog post about this property.
He decided to go with it because it was for even better price that the one he missed, and it is not a short sale, so he does not need to wait. The fact that it is all done unseen does not bother me, as the resort was recommended to him by his friend, and the other factor is that for this price it is not a big deal anyway.
The price is a low price, but it will leave my investor with very good profit. We are closing this one in 2 weeks.
I am looking back and I see 3 transactions within one month. Not bad for a slow market.
So what about the guy I met on the Beach? No, he will wait until the market stabilizes. Can he buy something when it stabilizes? Sure, it will cost more, but he sure can…
* Image courtesy of Karen Roe via Flickr.com