Need advice for my home 5 posts by 4 users

Posted: 01/10/2008 at 04:08PM

I'm about to give up on this one. When I purchased my home, I started the cash out refi process about a month after closing. Mind you it took 4 months for my loan officer to finally close and sign docs (Jan of '07 - April '07). I obviously didn't get the cash back I wanted, so I used what I had for carrying costs, because it wasn't even close to my fix up estimates.

So now, I have only one month in reserves for carrying cost, and still no progress on my home. Any suggestions on what to do would be very appreciative. My credit has gone down to the mid 6's, so I don't think a lender would even consider an application from me.

Anyone?? Help!

To answer you Jon,
This is my first project, so YES I am learning as I go.
No this is not my primary resident, and I got into this for a flip. I was trying not to go into details how I got screwed over by a contractor, and loan officer, and realtor...all in the span of 6 months.
What I got from the cash out refi, was about 1/4 of the estimated fix up costs, and then my contractor bailed, after paying him some upfront. My " carrying cost" from the cash out refi is almost depleted. As far as the fixing of the home, there has been no progress on it because of people who are slick with what the have to offer (more like take).

So any creative ideas from investors on what I can do in this situation. I don't want to lose this property.

If you know anyone that would be willing to assist, and then getting a portion of the profit when its flipped.

Posted: 01/11/2008 at 04:48AM

Cheyne,

Here's my idea. Do the work yourself. If that means you've got to work 16 hour days - do it? You didn't really think it was going to be easy like on TV - did you? By doing the work, you'll save a bunch of money and you should be able to work a lot faster than a contractor. I've found through experience that I can do the work of 5-6 laborers and do a much better job. Why, because I don't spend the majority of my time talking, taking smoke breaks, and screwing around. In addition, I never steal from myself or fail to show up. I don't miss work because I'm hungover or because I'm in jail. I also won't take my money and disappear.

Good Luck,

Mike

Posted: 01/11/2008 at 11:42AM

Cheyne,

Having done fix and flips for 12 years, both Jon and Mike give you excellent advice.

I always limit the number or use of contractors specifically for the reasons you have experienced and Mike described.

You sound as if you are at the end of the line money wise, if you can't get capital to finish, either through private money or a money partner, I would lean towards selling as-is and get out from it before it becomes a further burden.