Thoughts about US and Global real estate market, creative market analysis/forecast/outlook, investment tip for Austin Tx, San Francisco, Manhattan and Zihuatanejo Mexico,,,,
Saturday, 30 April 2011
Short Term Investment Opportunity - Second Mortgage with 10% interest and 25% on Capital Gain
- Seeking investor who can provide $600,000 ofsecond mortgage.
- Great opportunity to participate in the shortsale flip transaction --- results in 6 month.
- Guaranteed 10% interest and 25% of capital gain--- projected annualized return of 19% to 49%
- Secure investment with minimum $700,000 inequity.
- We are seeking a investor who can provide$600,000 second mortgage on 2610 Wooldridge Austin Tx 78703, super primelocation luxury proprety in exclusive Pemberton Heights.
- Current lender approved of short sales purchaseat $1.6 milllion, property value is at around $2.3 - $2.4 million, minium$700,000 equity.
- The lender has commited to issue $1.0 million offirst mortgage thus we are seeking $600,000 second mortgage.
- Second mortgag amount is $600,000 for 10%interest. Interest ($5000 a month) will accrued to the principal amountand paid at the time of sales or refinancing ($630,000). The balloonperiod is 6 month.
- In addition, at the completion of resale orrefinance of the property, investor will receive 25% of gross profit. Gross profit is calculated as 90% of resale price (or appraisal value) minus$1.6 million.
- Funding target date is May 10 2011.
- Expected annualized return of 19% to 49% (seebelow chart).
- - Property Value: $2.3 - $2.4 million (seeattached comps)
- - The most recent two comparable sales inPemberton have is 2422 Wooldridge which sold for $400/sq ft. 1406 Wooldridge ispending at 418 a ft.
- - 2610 Wooldridge is on a 2/3 acre lot (.67 acres)which is a double lot (only one on Wooldrige with access from 2 streets). Theproperty at 2618 Wooldridge, the modern house was listed at $400/sq ft andthere is a smaller house, 6 Green Lane which is 3300 square feet and is listedfor $500/ft.
- - Based on above analysis, we believe the fairmarket value of 2610 Wooldridge is between $2.3 million and $2.4 million.
- - See attached CMA for details.
PROFIT MAKING STRATEGY
- - David Lawrence, renowed contractor on luxuryhouses (see attached resume), will be handling minor remodeling to make theproperty to top condition within a month of upon the closing.
- - David Lawrence will create LLC (name to bedetermined) and this LLC will own the property until it is sold.
- - Once the property rennovation is completed, wewill immediately list the property with the goal of completing transactionwithin 3-4 month.
- Investor will receive 6 month interest even ifproperty is sold less than 6 month.
If you are interested in investing in this excitingopportunty, please contact me.
Gen is the Founder/Principal of Oyster Real Estate Investments, Inc., a San Francisco-based real estate investment consulting company, serving clients in Japan and United States. He is currently focusing on clients’ real estate investments in Austin, Texas and Zihuatanejo, Mexico. Gen has managed 250+ property transactions/consultations in Austin, Manhattan and San Francisco and is skilled in finding below-fair-market-value, no-qualifying-seller-financing and bulk(package)-purchase discount properties.
He also writes a very popular blog in Japanese about real estate investing in USA and Mexico: http://blogs.yahoo.co.jp/sfscottiedog. Prior to founding Oyster Real Estate Investments, Inc., Gen held senior management positions in various large corporations: McCann-Erickson (Tokyo and San Francisco)- Account Supervisor; Levi Strauss & Co (Asia-Pacific)- Consumer Marketing Manager; Yahoo! Inc.(Sunnyvale)- Senior Director of International Sales and Marketing.
Gen Shibayama and his wife own and manage approximately 50 properties (100 units) in Austin, Manhattan and San Francisco.