Hello. I have the opportunity to purchase a condo in manhattan for $500,000. The appraised value is $2,500,000. I can buy the condo, refi, and cash out easily a cool $1,000,000. Here's the tip: The REASON why i can buy this so cheaply is because there is a young lady (mid 30's) who lives there, and INHERITED the rent control that was in effect in 1913 from her grandpa. (she lived with him, so she inherited the lease.) If I do this, and then I DEFAULT on the mortgage, I would (in theory) walk away with a million dollars. Worth it? Legal? What would a forclosure do to my score? (it's just a thought.. please DONT SCREAM AT ME!!!)
I hope board monitors ban him/her 1. Even in the best homestead states - if you default on your mortgage you lose the property. 2. Why not yell at you? People, uh scum, that try to scam the system just make it harder for those with legitimate credit problems.
Why would she sell to you for $500,000 if she could get $2,500,000 or even $2,250,000 (ON SALE~PRICE CUT FOR QUICK SALE)??? Even if you could pay $500,000 CAN YOU QUALIFY??? I got a "YELLOW LIGHT" on my RE-FI I tried to do with $100,000 EQUITY because I have "EXCESSIVE AVAILABLE CREDIT LIMITS" (so they said). Do you have any "BADDIES"~~~I NEVER HAD ANY.
I'm puzzled. If you can buy it for 500K, and it's worth 2.5MM, why wouldn't you just buy it and resell it? Why does foreclosure figure into this? I'm no real estate mogul so I've obviously missed something here. DemPooches
I will buy it from you for $1MM + at your closing...double closing.( if it appraises for $2.5 ) I would also be interested in purchasing any option etc. Seriously. My email is on. In all fairness, you have a great opportunity here. You can make your profit at the closing and be done with it. I would be happy to be on the other end of it, but you can easily accomplish this without me. If you need help getting this deal done I would be interested. Jeff
Re: Respond to This!! (rock this on Can't beat a deal like that. You wouldn't even need to do a double closing, just get it under contract then assign the contract to Jeff. He has just offered you a way to legally make half a million w/out any risk to your credit at all. Gib
Re: I hope board monitors ban him/her People, that try to scam the system just make it harder for those with legitimate credit problems. zerodown ============================= Correction : People aren't scaming a system.The so called system is scaming the people.
Re: I hope board monitors ban him/her With an attitude like that lbrown, you may find yourself in jail some day. Please explain to me how the above situation is the system scamming the people? Are you ALWAYS a victim, lbrown? If so, what an awful life you must live. Hawg Hanner
Re: I hope board monitors ban him/her With an attitude like that lbrown, you may find yourself in jail some day. How did you come up with that one?
Re: I hope board monitors ban him/her Why should kykeklunk be banned from the board for purchasing a $2,500,000 condo for $500,000 ? LB 59
Re: I hope board monitors ban him/her lbrown: If the deal is real then more power to him. However, when someone purchases something with the intent to not pay ("If I do this, and then I DEFAULT on the mortgage, I would (in theory) walk away with a million dollars.") then that is scamming.
Re: I hope board monitors ban him/her Having never lived in Manhattan, maybe I'm naive, but how does one purchase a property from a lessee?
Re: I hope board monitors ban him/her And I didn't read the subject line before I posted the last message, sorry, I personally have no opinion in that area.
Explain to me WHY the owner is willing to give away 2 million dollars. I don't understand that part. Is she insane? What the hell does rent control have to do with anything?
Re: I hope board monitors ban him/her If it is a LEGIT DEAL~~~buy it for $500,000 on MONDAY 7 day escrow and RE-SELL IT before the end of the month for $2,000,000 AND WALK AWAY WITH $1,500,000!!!
Re: Respond to This!! (rock this on That's right. Klunk doesn't have to arrange financing or find a buyer. ( Klunk/and or assigns ) Again, I'm interested. My email is on. Jeff
WOW! Lets get this straight!! There is a Landlord who OWNS this condo. If it were VACANT its value would be 2,500,000. BUT... Its OCCUPIED by a TENANT who pays $1000 a month for an apartmentment valued at $15,000 a month. Plus, the RENT does NOT cover the expenses, meaning that before mortgage, the condo loses $500 a MONTH. The tenant can stary there at the rent established during WORLD WAR II, because her GRANDFATHER was the original tenant and she inherited the LEASE, not the OWNERSHIp, of the condominium. Therefore, I can purchase it for $500,000. IN THEORY, when the tenat decides to move or does, the condo will be worth 2,500,000 in market value. SO, I can buy it cheap and REFINANCE, and based on the appraised value, by looking at what similar condos in the city sell for, for, lets say 70% of the APPRAISED VALUE of $2.5 Million. I am trying to have a stimulating discussion with all of you intelligent people here. NOW, anyone still interested in purchasing it for $1.5 Mill. from me? --- This is not an ad, just a response to the previous poster
Re: WOW! Lets get this straight!! It doesn't hold water. Unless her grandfather had a hundred year lease (transferable) The apartment/condo is worth 2.5 mil to the owner of the condo once she leaves, not to her. Go ahead and give it your best shot. Gib
Re: WOW! Lets get this straight!! And, have you (via an attorney) examined the lease. Usually there are out clauses in leases that would enable the owner of the conodminium to cancel the lease (usually for a fee or some other consideration) if the owner is going to sell the property and/or move into the property him or herself. Hawg Hanner
