Here is a case study of a typical investor deal in Seattle. The subject property is a 1911 bank-owned one-bedroom, one-bath 590sf bungalow on a 3300sf lot in the highly desireable Ballard neighborhood of Seattle. It was listed on the NWMLS for $185000 for seven days, until which the bank was accepting offers. Offers were due by midnight yesterday.
My clients are investment partners who decided to submit an offer of $155,000 on the property with no inspection contingency, no financing contingency and no escalator clause. Their exit strategy was to secure a conventional mortgage with 20% down, clean up the property, replace the roof, and then rent it out for $1100-1200 per month. They estimated their monthly payments at $1076.
Last week we learned that there were five offers on the property. But while the agent shows the listing as pending, the bank has asked each of the bidders to submit their "best and highest offer." My clients have already done that, but I suspect that the bank was unhappy with the bids received. I suspect also that there may have been a number of low bids with escalator clauses, and the bank has now asked that bids be submitted without the escalator.
My clients have decided to hold tight. Will they be the successful bidders on this property? We will find out tomorrow!
But there are many such deals that investors can find on the NWMLS today, many short sales, pre-foreclosures, distressed properties, and REOs, in all price ranges in Seattle. A savvy buyer can find some fantastic bargains, especially those willing to do a bit of sweat equity. The biggest competition is in these lower price ranges, but a successful buyer makes offers!
If you want to jump into the game, be sure to drop me a line here or give me a call, text or email. Let's make some deals!