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Bullseye! – “The Target House”

We’ve been “targeting” this house for well over a year after finding it in one of our secondary farm areas. It’s not in our favorite Mahncke Park, but along the Broadway corridor closer to downtown, the River Walk Extension Project and the hot Pearl Brewery revitalization area. While it fits our overall financial investing criteria, additionally it also stays with our current model of taking historic houses close to town and turning them into better-than-new special homes for the young, hip and trendy urbanites. Over the past year we’ve sent numerous letters to the homeowner as well as left notes asking if they wanted to sell the house (see video). The elderly owner never wanted to sell the home and didn’t answer any of our correspondence but when he passed away a relative came into town and gave the listing to the first Realtor sign they saw which happened to be a few houses away. The listing agent had the home priced accordingly for its extremely poor condition but even at asking price in the high 130’s we knew it was a great deal.

After seeing it hit MLS late on Thursday night after I got home from work I called the listing agent and scheduled a showing for the next morning and had her write it up. You have to monitor MLS everyday to grab the good deals when they pop up, another day and this puppy would have gotten snagged. For anything in MLS we always write our own offers and take the 3% commission but for the $3900.00 we left on the table it was worth it to let the listing agent double-end the deal as from our experience it *somehow always increases your odds of getting an acceptance. After she wrote it up I pressed for her to present it to the sellers that very day which was Friday the 13th so we wouldn’t get into the weekend and have more offers come in. Our strategy worked and just as we received the signed contract evidently the rest of the city awoke to the offering and other agents were calling disgruntled because they didn’t have a shot. You snooze, you lose! The neighborhood that this house is in is very small so there’s not much turnover or recent sales comps. For as close to downtown as it is, it’s fairly stable and walk-able. All of the SOLD comps have an average price of 275k but go back to 2004. Average price for all ACTIVES now on the market, (only 3) is 335k. It’s only because we knew our area so well and have an accurate handle on what’s going on that we were able to jump so hard and fast. By looking at the numbers it’s going to pay off, stay tuned, as I’ll start the restoration after Christmas.

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