Make $200,000 in 30 days!! - Buyer in place - 7%+ CAP in LA, CA

By
Real Estate Broker/Owner with Private-Money-Loan.com BRE#: 01849108

THIS DEAL JUST GOT WAY SWEETER!!!

It was on a 90-day clock, now it's less than 30 days

 

money raining down

 

Retail: Commercial space

Tenant Occupied

9080 SF building

Street Frontage

Escrow opened with buyer in place to take out at $1.4M

 

This is a great opportunity for people who like to make fast money. I have a unique situation where a client's mother died leaving her a retail space. Because there is a death clause in the NOTE wells fargo has accelerated the loan and is going forward with foreclosure proceedings.

The property is worth $1.5M easy. We have a buyer in place to buy it with a hard money loan for $1.4M at a discount. The catch is the seller won't own it in 20 days because of the foreclosure. So we need someone to come in, buy it for $1.2M and then resell it for $1.4M and make $200,000. It is currently leased triple net, way below market at $7500/month. 

So let me know if you want to make a quick buck.

Call me at 310-948-8585

Comments (8)

Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Good luck with that one!  I'd help but there is no way I could qualify for that (and if I could I'd probably want to keep the property).

Jul 13, 2016 05:08 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Steve,

I think there is much more information needed than what you have given us.  In a NNN lease situation there are lot of factors to determine the value of a building including the tennant 's financial standing...And having spent 20 years in commercial real estate on the West Side of Los Angeles including BH and West Hollywood, and worked with investors day in and day out...I would not invest nor would I recommend someone to do so, or like Ryan Huggins - Thousand Oaks, CA stated, I would keep the property.  A

Jul 13, 2016 05:39 AM
Pete Xavier

This is a curious situation, something like this could be resolved without bringing another outside investor or buyer...I would believe (without knowing the total facts). Speaking as someone who understands investing and default situations (even though a death clause triggered this).

Jul 13, 2016 06:08 AM
Ryan Huggins - Thousand Oaks, CA

The more it sits in my mind, the short term capital gain tax would be brutal unless you did a 1031 as part of it.  Even then finding something to put the profit into would be my biggest problem.

Jul 13, 2016 09:04 AM
Pete Xavier

This would be taxed as self employed income, capital gains typically are for holdings of one year or greater.

Jul 14, 2016 04:00 AM
Jack Lewitz
Exit Strategy Realty - Evanston, IL

I'm not sure your understanding the lenders position in this deal . If there is an acceleration clause the lender will end up foreclosing on this property and many lender is not going to go for the scenario your describing . 

Jul 13, 2016 06:51 AM
Pete Xavier

Owner still owns it (trustee controlled), but can pay off the loan with proceeds from a sale. (Yes, there are legal issues here as far as controlling authority).


 Not necessarily "end up"...many situations can be and have been cured.

Jul 13, 2016 07:07 AM
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

I'm willing to buy for $900,000. cash but will hold forever. How can you sell to a willing buyer and make them sell to close your loan?  If you are proposing they payoff Wells and carry paper, that's another story. Deceased person ran the business? 

Jul 13, 2016 07:51 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Steve Snyder - not my cup of tea (or coffee....) and not the right time for me to invest, either.

Jul 13, 2016 04:01 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Steve, reading this is making me wish I understood a lot more about this stuff.  Hope you make a boatload for yourself and any buddies who hop on the train!

Jul 14, 2016 10:20 PM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Steve, I wonder how many people have $1.2 million availablbe in credit or cash to buy this property?  I don't!

Jul 15, 2016 04:18 AM

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