Just a few weeks ago a buyer landed a great bargain on a 3 unit property. This one is on Flight Avenue in West Los Angeles. The sale date was 10/17/2016. The buyer followed this property, as we must, through many postponements. Auction dates get pushed back for a number of reasons. This is a plus for the intrepid investor. When others lose interest we get the deal because we stick it out with our eye on the prize. This building is worth over one million dollars. We always point out that comparable values can vary. This is a prime example.
Our value estimate is $1,016,196.00, while a major real estate website values it to be much higher at $1,633,485.00. Which one is right? Or is the actual value somewhere in the middle? That is for the buyer to determine. Either way the value exceeds one million dollars.
At auction, the foreclosing loan opened at $672,788.30 and the bidding proceeded. There were obviously multiple bidders, because in the end the bidding stopped at $793,000.00. So more than one smart investor had their eye on this great property with loads of equity. But in the end there can only be one buyer. It appears that this was the only loan on the property, making this a bargain. The buyer would have done their research well before-hand. They would have driven by the property and made sure that the comparable values lined up with the actual condition of the building. They would have made a call to a title company to confirm the loan information. Finally, they would have made the plans in advance of the auction to have their cashier's checks and be at the right place at the right time.
Congratulations to the buyer. It is a challenge to get it right, but always worth it.