Home as percent of net assets?

[james22]

14 hours ago, bizaro86 said:

One way to raise money for a few years cheaply assuming you still want all the MSTR exposure would be to go synthetically long. Buying a call and selling a put at the same strike gives you full MSTR exposure, and releases almost all of your cash. Obviously it uses margin so you want to be reasonable, but the effective rate is quite low and it's locked in for the life of the options. 

 

I've tried to avoid options, but thanks for the thought.

 

Realized what I really want is the option to buy.

 

Spoke with my realtor about making an offer $100K above ask with a non-refundable $50K deposit if they take it off the market until the end of the year. She thought something like that would be reasonable.

 

Certainly easier and less costly than making some new owner an offer.

 

So might still happen.

[Red Lion]

25 minutes ago, james22 said:

 

I've tried to avoid options, but thanks for the thought.

 

Realized what I really want is the option to buy.

 

Spoke with my realtor about making an offer $100K above ask with a non-refundable $50K deposit if they take it off the market until the end of the year. She thought something like that would be reasonable.

 

Certainly easier and less costly than making some new owner an offer.

 

So might still happen.

 

That's a really interesting idea. Is it owner occupied or vacant? You could maybe work something out to lease the property until closing so they also get some rental revenue while they wait to close. 

[james22]

22 minutes ago, Red Lion said:

 

That's a really interesting idea. Is it owner occupied or vacant? You could maybe work something out to lease the property until closing so they also get some rental revenue while they wait to close. 

 

Owner occupied, but I don't know the story.

 

If they need sell this to fund their next place, they won't be interested.

 

If just a pied-à-terre, they might be.

[nsx5200]

May be too late, but given your concentration in MSTR, converting it as a down payment for an inflation advantaged debt might actually be a more wise long-term move.  A little bit of diversification(hopefully not diworsification) in case MSTR doesn't turn out completely the way you want it to.  The view could just be a side benefit.

[james22]

10 hours ago, nsx5200 said:

May be too late, but given your concentration in MSTR, converting it as a down payment for an inflation advantaged debt might actually be a more wise long-term move.  A little bit of diversification(hopefully not diworsification) in case MSTR doesn't turn out completely the way you want it to.  The view could just be a side benefit.

 

Sure, but easier at the top than now when I believe the opportunity cost too high.

 

I do have a better idea of the Sweet Spot now (both from the Eff You Money thread and this experience) that will let me diversify at a certain number.

 

There was really no reason before to take anything of the table.

[james22]

New development.

 

Floated the idea of paying the owner a $100k non-refundable down payment to buy at year's end for $100k over list. 

 

They're open to talking about it.

 

If MSTR doesn't recover by then, the loss of $100k won't matter much.

 

If it does, overpaying by $100k will seem inexpensive. (And the place may have appreciated by that much by then anyway.)

[73 Reds]

9 minutes ago, james22 said:

New development.

 

Floated the idea of paying the owner a $100k non-refundable down payment to buy at year's end for $100k over list. 

 

They're open to talking about it.

 

If MSTR doesn't recover by then, the loss of $100k won't matter much.

 

If it does, overpaying by $100k will seem inexpensive. (And the place may have appreciated by that much by then anyway.)

Perhaps a better alternative is a $100k option to purchase the property by year's end.  If things are looking iffy on your part you can always try to assign the option to another buyer for a profit, break even or smaller loss than simply losing your entire down payment.  Otherwise at least insist on an assignable purchase/sales contract.  

[villainx]

On 3/4/2025 at 4:10 PM, james22 said:

I've decided not to go forward though.

 

The one rule that my spouse taught me is to offer minimally 10% less than asking.  Her offers always make me question her rationality.  But if it's a good deal, hey, why not make it a great deal.  

 

Deciding not to go forward now also means there's a chance the property can sit in the market for a while - and also lead to a better price.

 

Good luck!  As mentioned above, contacting the mortgagor or mortgage broker now also isn't a bad idea.  Can get a sense so about financing and when you make offer, you have more certainty about how the financing will go, and that can make your offer more attractive.

 

[james22]

12 hours ago, 73 Reds said:

Perhaps a better alternative is a $100k option to purchase the property by year's end.  If things are looking iffy on your part you can always try to assign the option to another buyer for a profit, break even or smaller loss than simply losing your entire down payment.  Otherwise at least insist on an assignable purchase/sales contract.  

 

Shows how little I know about real estate.

 

Didn't know this was a thing.

 

Thanks.