If the finance co. signed the sales agreement, they have no choice, but to abide by the price and terms.
Lenders are notorious for last-minute change-ups. Screw that.
My analytical newbie partner Fortino bandito calls yesterday to says our seller the finance company said they wud honor the signed purchase contract. Oh really, what cud they do? They hired some body that went over budget on a rehab while trying to coordinate everything from Los Angeles, 250 miles away.
Now Title company wants an addendum written in about getting our assignment fees paid outside and before escrow.
I asked bandito to sign it and he wants me to write in that buyer will also pay the $500 earnest deposit he gave Title.
I asked bandito why do you insist on making an earnest deposit? Our objective is to do these deals with no risk.
He had already made a trip to the Title company and made that deposit.
But, things are progressing, now if only our realtor buyer Jeanette does what she says.
I can see the finish line. Our buyer Jeanette called me this morning, she hasn’t signed our addendum stating she will pay us our finders fee b4 closing.
But I got it drawn up and me and the 3 amigo’s signed it and sent to her. She had a few questions like what was we paying for the property and if both houses are rented and her hubby was asking a few.
So now Jeanette and hubby are driving down or up from Los Angeles to inspect property b4 they sign the addendum and pay us our stinkin cash.
This is where it can all go south. But, this is where it can all come together too.
Our buyer the lady real estate agent from Los Angeles inspected the property Saturday with her hubby, they drove the 500 mile round trip. But, I havnt heard from her, I send an email last night asking if she was ready to move forward and to get that signed addendum to us Monday, today.
But I got a back up offer for a few grand less for cash. Fortino the bandito wants to wait a day or 2 b4 we shift gears and go with another buyer, that assignment fee upfront sounded pretty damn good, but looks like it cud be out the window.
What a crazy deal.
This lady realtor wont respond to emails, txts or phone calls, for gods sakes at least tell us that you don’t want the darn thing.
Did I mention how I dislike realtors?
Back to square one, even my back up buyer is not responding. I’m gonna get some more ads going and try to get this baby a new home.
I’m off to look at a newer home in a small town about 50 miles from me, normally I wudnt get off my ass, but this seller is from Arizona, their renters lost their job, I got an indication their is distressed situation here. I sent an offer of 115K, house is worth about 150-170, probably needs carpet and paint and fence repair.
This seller is making a 12 hour trip to California to meet with me at the house. They cud be behind on payments, gonna take 5 Grand to get it rentable and they live 875 miles away.
Our lady realtor is no where to be found, flown the coop. I got more ads running, but nobody wants this mediocre deal in a bad area for this overpriced pos. Maybe I need to get with the 3 amigos, me Frank and Fortino, and slash/butcher our assignment fee to get this thing out the door.
I guess that’s why Susan Lassiter Lyons refuses to flip to buyers with no track record, and/or no reputation to maintain.
Another reason I want to paid up front, rather than at closing.
Somebody buy this thing and end our pain. We slashed the price by 10 Grand, One of my buyers was saying even at 89K
it don’t seem like such a great deal. I tell him, you know it may not be a great deal, but, it’s got that cash flow. He’s going to take another look on Saturday.
I need a few buks to make the trip to Northern Idaho to feed my pet moose.
My partner Fortino was cancelling the escrow and the mortgage company offered to finance it for 2 years at 5% and 20% down.
I told Fortino that’s interesting, tell them we want a long term loan. Cuz these short term loans are risky.
They came back with a 5 yr term at 7% and $20% down and wont do longer cuz they are elderly.
This is the deal that wont die.
I don’t understand. Is the seller a private party, or a bank, or both? What’s their age have anything to do with anything?
If the property is free and clear, the seller can be ‘way’ more flexible in how they get their money than what they’ve offered here.
Why put 20% down, and then pay $6,320 interest, and then invest another $20-30K down to fix the place?
I mean that’s like investing 40% in the property. Forget that. It’s better to drop the price another $20K and cash them out, then to fiddle with a no-leverage hell hole with very little upside. It’s like trying to juice a rotted lemon. Sure, something will come out, but ick.
Why?
If I just wanted a portfolio builder, I would make a net offer to the sellers, if they agreed to bargain terms.
Obviously, they wanted cash, but they also wanted too much cash. So, now they’ve got to settle for cash-flow. Well, they get cash-flow, and that’s all they get at this price. So, I offer full price, no down, 4%, 30/yr/fixed, all due in 120 months. This way, I can afford to overpay, and I’m only putting up one down payment, not two.
After all is said and done, the sellers get $35,600 in interest payments, plus $89,000 in equity, over ten years, or $125,600 just for acting as a bank on an over-priced pile of junk in the middle of Dirthole, CA.