I signed an equity purchase agreement on Sunday June 4, 06 for a geodesic dome home. My intentions are to take over the pmts, rehab and flip within a couple of months. It has been difficult to get an appraisal. I was trying to find a finance co that would handle this for the buyer when I resell it. It is taking time to do this of course because it is alternative housing. There is one other dome home in the area. The next pmt is June 10, grace period until June 16. There is not a NOD.
The investor suggested sending the owner a letter to cancel the agreement and continue trying to help. If I get what I need from due diligence, I can create a new EPA. He says I should do this to cover my **!*. Another person said the agreement has all the clauses necessary to get out of it at any time, not to worry about the letter and to get busy.
Anyone willing to share their experience or suggestions would be much appreciated!
I would suggest that you develop a house philosophy. This philosophy should dictate what you buy. You should not deviate from that philosophy unless there is a huge reason. My philosophy requires me to do deals that are just like the deal that I just did. In other words, I have a pretty good idea of what each house I buy will cost and what it will rent for and even what it will sell for. Unless I buy domes all the time, I can’t know that. Stick to your bread and butter houses. They are predictable.
I buy my bread and butter house which is a 3 to 4 bedroom, 2 bath, 2 car garage house that is 1200 to 1800 sqft on a slab built between 1975 and 1990 in a middle class neighborhood. These houses retail for $100k to $150k and rent for $950/month to $1300/month. THEY ARE ALL JUST ALIKE.
Domes, beach houses, lake houses, house boats, tree houses, caves etc. are what I plan to buy for BIG appreciation once I have my base of 20 SFHs that cash flow an average of $200 per month ($4000/month total). That base of 20 will give me the income I need to do other ventures like buy dome houses.
This house fits my philosophy except for it being an unusual house. Oh well. At least this is progress and that much closer to closing a deal. Thanks! 8)
Bes
I am not trying to badger you or anything. I am trying to understand. What is your philosophy? Is it to buy unusual homes, or buy hames in a specific area?
I do not feel badgered. Thanks for acknowleding that. I am after midrange 1st or 2nd purchase homes in southern ca to purchase below mkt value and either flip or rent. That price range will be higher than your area, but same concept, “more zeros”. I was contacted via a distressed homeowner re:this dome home prop. That is how this scenario began. All fits the plan except for being an alternative home.
There is one dome home in the area. It did not sell in the last 6 months or even yr. I read that some mortgage co’s will accept traditional homes for comps, but deduct 10% of the value. A manufacturer suggested a broker that specializes in dome homes and she has not called me back in 2 days. I left another msg today. Several manufacturers offered to help if it was their home and I cannot get the info from the planning dept since they no longer have info from '79. The owner does not have that info either.
I am just wondering if I should officially cancel the epa or overnight a note stating where I am at and that due diligence cannot be completed by the time of their next pmt on June 10. Perhaps the letter should give them the option to cancel the agreement with me and also include cancellation forms.
Hm.
Have a good day. Your listening “ears” have been most helpful.