High End Homes- More Difficult to find T/B!!

[puls1234 0]

I have been working to find a tenant buyer for a $725,000 home that I have on cooperative assignment. I have done everything I normally do and then some.

 

1. Sign in yard

2. Ad in daily paper

3. Ad in weekly paper

4. Ad in FSBO magazine

 

I know that the higher the price the less calls I will get. But maybe someone here has an incredible idea for me to find a tenant buyer. $300,000 and below is easy to find a tenant buyer but I am finding this challenging. Maybe I need to be more patient. Its been almost 2 months.

 

Pete

[MichaelC 160]

Pete, you know as well as the next guy that the higher the price of the property, the smaller is the pool of potential tenant/buyers, or buyers for that matter. In my experience, two months for a property in that price range is not an unusually long marketing period. I had a $750K property in Albuquerque years ago when the median price was around $120K. Worked on that sucker diligently for an entire year, and still was never able to fill it. The good news to this tale is that I became good friends with the homeowners during this time. And in the interim I helped them do a CA on another property they owned, (around $300K), and two more CA's on properties that were owned by the sister.

Be patient, Pete, but continue to be the aggressive marketer you are. Your objective should be to get the word out to those who know where these upper end types are. Have you considered contacting any local Realtors who specialize in higher end properties? Tell 'em what you have, offer them a chunky finder's fee, and let 'em work for their money. Do the same with a few Realtors and spread your reach.

[option8 0]

I'd suggest networking with a few mortgage brokers, too.

 

option8

[JamesT 0]

Do you know people who work for local companies that may have a lot of highly paid exec's?

 

Maybe ask friends who work their to post your fliers on their lunch rooms. Or at my work for example, each floor has a snack area where there is a board where anyone can place fliers.

 

Depending on the companies in your area this might be a good idea.

 

Good luck

James

 

Caveat: Poster is a newbie RE investor and maybe talking out of his you know what!

[MichaelC 160]

Caveat: Poster is a newbie RE investor and maybe talking out of his you know what!

Even old, grizzled RE investors talk out of their you know what at times. So, by all means, keep talking James.

The suggestion you make is a good one, though. If there are any large companies in the area, it may be worthwhile to contact their Human Resources office to see if they have any sort of relocation program for their employees. You never know....

[Kimberly 0]

Do you know people who work for local companies that may have a lot of highly paid exec's?

How about headhunters looking to fill executive vacancies? Might even want to offer them a referral fee to be sure they refer to you!

 

Kim

[Mr Saint 0]

Do you know people who work for local companies that may have a lot of highly paid exec's?

How about headhunters looking to fill executive vacancies? Might even want to offer them a referral fee to be sure they refer to you!

 

Kim

That's a great idea Kim.

 

The other day I was listening to a radio program that featured a couple executive head hunters. Basically, they are hired by large corporations to fill their top jobs. These people would be a great contact for filling a high end home because they are bringing execs in from all over the country...and I'm sure as part of the 'package' they deal with housing, at least at some level. Good tip.

[Adam King (MI) 1]

Pete,

I'm in the same boat. (Except we're paying cash for it. Yikes!)

I'm not scared one bit because the seller said there were a ton of local doctors and attorneys that wanted to rent it. (They're my target, plus Kim's ideas about the execs) MC had a great idea of offering 100% rent credit. That's a great idea and a good start.

 

I plan on hitting the market with "Great term high-end" property for sale. There's a ton of ways to sell it, but filling it LO still seems to be the dilemma. Again, I like MC's idea of the 100% rent credit. That can cost you $30K plus in profit, but when you're holding cost is $4K a month, it's not a bad gamble.

Hope that helps,

Adam

PS And if I can't sell it, I'll move into the damn thing. (Just kidding...I think)

[MichaelC 160]

I plan on hitting the market with "Great term high-end" property for sale. There's a ton of ways to sell it, but filling it LO still seems to be the dilemma. Again, I like MC's idea of the 100% rent credit. That can cost you $30K plus in profit, but when you're holding cost is $4K a month, it's not a bad gamble.

Don't sweat the rent credits. We've talked about 'em mucho times before. Just build 'em into the price to the extent that the property and the market will allow. For the most part, it's a wash and really amounts to nothing more than monopoly money. They are more a figure on paper than they are "lost profits". What they do, however, is to accelerate the process of securing a tenant/buyer for the property. Particularly a tougher to move or high end home. And, of course, if the option isn't exercised, it's all a moot point anyway since the RC's aren't refundable.

[Adam King (MI) 1]

MC,

Thanks. I plan on building them into the sales price, but still selling under FMV. That will cover me if someone does their due diligence and sees that the property sat so long and was lowered so low. I'm still just not sure what's going to happen until it happens. Should be an interesting ride.

Thanks again,

Adam