I have a property under contract now in a hot intown neighborhood in Atlanta. The contract price is $165k. On the same street 10 houses down builders have 4 separate new homes that are just breaking ground. The list prices are going to be from the mid $400s.
I’m having trouble with the closing b/c the bank doesn’t like the current condition of the home. The want to convert it to a rehab loan and show the repairs that will be done. Although best use might be to tear down and build (which the other builders are doing).
I’d hate to lose the contract and not making any money on a property that was a great find (in fact a builder has a backup contract on it)
Any thoughts???
There is not much you can do in Texas I don’t know about GA, but when you have it under contract you can sell that contract or assign it. To cover my butt I always have my company name and/or assign as the buyer and list myself as an investor that will most likly assign this contract so that the seller can get made if they see what type of profit I made.
Hind sight is 20/20 I know.
I would go visit those builders and see if they would buy the property and for how much. If they would buy it high enough for you to make a nice profit I would go back to the seller and ask for a new contract and extend the close date by however many the builder said it would take him to close on it. The worst thing that could happen is the seller says no.
Again this works in TX, but in GA I have not a clue.
Sammy