- Joined
- Aug 26, 2010
- Messages
- 380
Hi All,
Pierre Paul from the multi family investing side recently had an interesting example of a foreclosed 21 unit multi family property in Edmonton that he recently bid on. He put a description of this up on his website as part of a blog post about how to value buildings. In this case, the 21 suiter was bought in 2006 for 1.6 million and then sold again in 2007 for 2.7 million.
That's right, a 1 MILLION dollar price jump. Whoever sold this building was incredibly lucky on their timing.
How could this happen? I don't understand how a bank would ever give a mortgage with such a massive price jump unless the buyer coughed up all the cash difference between the previous year's pricing of 1.6 mill and the 2.7 mill. OR they had other properties with enough equity the bank could place debt against.
Are there any other scenarios that could account for such a massive price jump?
Pierre Paul from the multi family investing side recently had an interesting example of a foreclosed 21 unit multi family property in Edmonton that he recently bid on. He put a description of this up on his website as part of a blog post about how to value buildings. In this case, the 21 suiter was bought in 2006 for 1.6 million and then sold again in 2007 for 2.7 million.
That's right, a 1 MILLION dollar price jump. Whoever sold this building was incredibly lucky on their timing.
How could this happen? I don't understand how a bank would ever give a mortgage with such a massive price jump unless the buyer coughed up all the cash difference between the previous year's pricing of 1.6 mill and the 2.7 mill. OR they had other properties with enough equity the bank could place debt against.
Are there any other scenarios that could account for such a massive price jump?