This duplex is located in a great neighborhood in Indianapolis named Bates Hendricks and was vacant for roughly 4 months due to the fact that the sellers weren’t able to sell it on the MLS. Our creative offer structure saved the sellers and the real estate agent.
Proven Track Record
Seller Satisfaction
Every Month
Acquisitions
The Challenge
The seller bought this duplex with a VA loan in 2022 for $436,000. Thanks to his VA loan he was able to buy this property by only paying the closing fees and without a down payment.
The seller primarily used the property as an Airbnb investment property but at the end of 2023 the seller had to relocate out of state and therefore decided to hire a real estate agent to help him sell the property on the MLS.
At the time of listing the duplex on the MLS the most recent comps supported a sell price of $420,000 and because the seller bought the property with a VA loan meant that the seller was under water on the property as their mortgage balance was $427,267 at the time of listing the property.
The agent listed the home for $450,000 while his mortgage balance was $427,000 and the most recent comps supported a realistic price of $420,000 which meant if the seller would have accepted a $420,000 offer he would have to pay closing fees and agent commissions he would have to pay $40,600 to sell this duplex.
How Did We
Help The Seller & Agent?
We approached the agent and seller after the property has been listed for 45 days and with similar properties currently being listed in the same neighborhood in the $420,000 range we quickly realized that the seller would not be able to sell his property with a traditional buyer.
We proposed our creative offer that would allow us to buy the property, pay all closing fees, agent commission, and then take over the seller’s mortgage payments.
The seller quickly realized that our offer was the only solution for his situation and after a few conversations we structured a solution for the seller which allowed him to sell his house quickly, and keep the $40,000 they otherwise had to bring to closing in order to sell this property.
We also were able to pay the agent a $6,500 commission whereas without our offer she would have not been able to sell the property.
We opened escrow and closed 3 weeks later with Hocker Title in Indianapolis.
The Results
- We paid all closing costs
- We paid all agent commissions
- We were able to close quickly with no contingencies
- We bought the property subject to the existing debt staying in place
- The sellers were able to sell their house with a profit instead of having to pay $40,000 to sell the house with an agent
