In colorado the seller has 3 business days to cancel the contract no matter what. Do i have to wait the three days before i can close? anyone have a similar situation. going to call lender after i get owners authorization and try and ask for an extension. anything you think i need to do just drop a comment and ill update as i go along. thanks.
The three days to cancel likely does Not apply to an auction, particularly a foreclosure auction. Specifics would be helpful.
Thats really tight. You can also petition the law firm representing the trustee for an extension. You are going to have to talk to them anyways to get a payoff.
You dont have to wait the 3 days, you can close as soon as title is ready.
Im calling to see if i can get an extension. I got the contract! first one! whew! This one was intense. It took about an hour to walk the house and negotiate a price. Filling out contract and down to last page....(knock, knock, knock). homeowner answers the door and its another investor door knocking. Door knocker starts with, "sir, do you know what is about to happen with your house?" and he continues to qualify, finds out I'm already inside but keeps talking with the homeowner. He finishes after about 5 minutes and gives homeowner a business card. Door knocker tells the homeowner to call him when we are done and that he lives in longmont(45 min away) so he will hang out in the area. long story short, I wait at my old place of work bullspitting with my friend/old co-workers for 2 hours. He called and let me know he is accepting my offer! Now off to another in broomfield. intense!!
I thought I'd give an update. I lost the contract to another investor. Anyone have advice on to help avoid this in the future? It seems other investors in this situation will just make a slightly higher offer than what might of been accepted. All around the block of the house now are hand written signs with "3/2 bedroom. MOTIVATED!!!" I only imagine its a wholesaler marketing it now.
Stay in contact. Did the person you lost the contract to close on the deal? If it was a wholesaler, there is a possibility (more like a probability) that the hand written sign wholesaler couldn't close. Then your offer is looking good...
Good advice. But after looking at cash comps in the area here in denver I'm finding that most investors or wholesalers are using 80%ARV minus repairs. And some investors are higher. The worst one I found was one bought at 84% ARV before repairs. Im wondering if they turned a profit. The last contract I had signed I went up to 77% ARV minus repairs. I still lost the contract. Im hoping its a matter of time before I land a deal.
@Account Closed how do you lose a contract to another investor when you are in the house and "got the contract"? Are you not performing or how does the owner sell to someone else if you have a signed deal? I know things are competitive but how are the sellers backing out of your agreement?
It was a pre foreclosure deal. He called and I went out to his house. Negotiated a price. Went through the contract and signed it. But the hardest thing is keeping a contract while the homeowner has 3 business days to cancel for any reason per the colorado foreclosure protection act. So what I learned after feeling sorry for myself was to door knock/email/direct mail the pre foreclosure list between 3 weeks and 1week before he auction date. I noticed a lot of other investors door knocking the week of the auction date which I did too. A lot of competition. And I was shooting for a price of 70%ARV minus repairs which is too low to compete with other offers in the pre foreclosure arena. After checking cash comps I'm going to start using 80% minus repairs. Im sure I'll get a contract to follow through now after a lesson in school of hard knocks and not properly looking at cash comps.
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