If your an investor looking for a little upside in your investment, one way you can play the Seattle market is by purchasing a condo during a time where the project is in litigation. I know some of you are shaking your heads, but hear me out.
If you do your homework with public information you can find material on the lawsuit and if your comfortable with risk you can make a move on condo that is tied up while the condo association, the developer and the sub-contractors duke it out. We posted a few weeks back on the projects currently in litigation. When this happens, sellers are at a loss. Buyers are unable to obtain financing – thus creating an opportunity to discount the asking price of unit for sale. Some sellers have to sell regardless of the suit. In fact, the lawsuits can last well over a year and often times reach the 2 year period. Why not offer a price that works for the seller and provides a generous discount for you as a buyer.
I should warn you, that this ins’t for everyone. You don’t know how a lawsuit is going to play out. Without being able to predict the outcome, you’d have to research the claims/complaints and find information that you believe may rule favorable towards the association. It is an option and why shouldn’t it be? If you comfortable with risk and there is enough upside, then maybe this type of purchase can work for you. If not, you always have the option of searching traditionally, considering distressed inventory or the option of buying a condo at the foreclosure auction.
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Jeff Reynolds and urbancondospaces.com are not providing legal advice. Buying real estate comes with risk. Buyer must verify details and carefully consider before making a purchase.