Anyone closed on a property in the last 1-2 weeks?

Investor · FL · Member since 2020 · 41 posts · 21 votes

I'm making offers on SFR mostly in Fulton County and curious to see if everyone has been able to arrange inspections, appraisals etc easily amidst covid-19 shutdowns?

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Thomas M.

Investor · Los Angeles, CA · Member since 2012 · 54 posts · 19 votes

I am closing in 3 weeks on a $2M property, SFR in an "old money" area. I was thinking about backing out, but I've been watching this play out and houses are still selling in this area, and all over SoCal. A few have fallen out of escrow, but lots are selling at full price....high prices. At first I thought it was buyers who were locked in and had no way of getting out of the deal, but now that this has been going on for over 2 weeks I can see that this can't be the case, it's actually buyers who want to buy and don't care about the potential drop in prices, or just really like the house they are buying, etc. Friends of mine who are investors also are yelling GET OUT... IT'S GONNA CRASH!! But as I talk to them more I think they are wishing for a crash so they can buy cheap deals, and people believe what they want to believe. People with cash are HUNGRY for cheap deals and they are getting obsessed with the possibility of a crash. Truth is no one really knows. For some people it's a good time to back out and wait, for me it's a good time to stay the course and buy. I think it really depends on what's happening in your own little economy. If YOU INC is doing well that's the most important factor.

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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Grace A.
I closed last week on a flip and have another under contract. No problem with appraisers, inspectors, brokers, etc. It doesn’t mean I don’t have anxiety. I have a rental we just put on the market. The response has been pretty typical to the pre COVID-19. This may be market driven. If I were in NYC or SF not sure if I would have the same results. I am in the suburbs outside of Chicago.
5 Reply
Nicholas LaGatta
Real Estate Broker · Atlanta, GA · Member since 2017 · 229 posts · 145 votes
6y
I've been focused on battening down my financial hatches with a string of refis. The last one I closed on last week was the last day my attorney's office was going to be open. After that, they would be doing only drive-through closing, meeting clients in the parking lot. I believe the Georgia Supreme Court is working on a way for closing to be done by video conference during COVID.
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Grace A.
OP
Investor · FL · Member since 2020 · 41 posts · 21 votes
6y
Drive-through closing. Wow. Video-conferencing closings would be great. My worry was that they'd shut things down instead, but it seems they're looking into ways to keep the real estate market open and running.
0 Reply
Brett Peters
Specialist · Lancaster, PA · Member since 2018 · 152 posts · 66 votes
6y
@Grace Agb, I closed a transaction yesterday.
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Connor Mullen
Indianapolis · Member since 2019 · 52 posts · 13 votes
6y
@Grace Agb
I'm closing on my first property in 3 weeks. Kind of nervous with COVID. Thinking about backing out.
That being said, te inspector came today and asked that nobody be present for the inspection, so it wasnt an issue at all.
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Thomas M.
Investor · Los Angeles, CA · Member since 2012 · 54 posts · 19 votes
6y
I am closing in 3 weeks on a $2M property, SFR in an "old money" area. I was thinking about backing out, but I've been watching this play out and houses are still selling in this area, and all over SoCal. A few have fallen out of escrow, but lots are selling at full price....high prices. At first I thought it was buyers who were locked in and had no way of getting out of the deal, but now that this has been going on for over 2 weeks I can see that this can't be the case, it's actually buyers who want to buy and don't care about the potential drop in prices, or just really like the house they are buying, etc. Friends of mine who are investors also are yelling GET OUT... IT'S GONNA CRASH!! But as I talk to them more I think they are wishing for a crash so they can buy cheap deals, and people believe what they want to believe. People with cash are HUNGRY for cheap deals and they are getting obsessed with the possibility of a crash. Truth is no one really knows. For some people it's a good time to back out and wait, for me it's a good time to stay the course and buy. I think it really depends on what's happening in your own little economy. If YOU INC is doing well that's the most important factor.
6 Reply
Daniel Griffith
Member since 2019 · 1 post · 0 votes
6y
Closed on one this week in Whitefish Bay / Milwaukee, WI.
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Anthony Angotti
Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
6y
Originally posted by @Grace A.:
I'm making offers on SFR mostly in Fulton County and curious to see if everyone has been able to arrange inspections, appraisals etc easily amidst covid-19 shutdowns?

We had one close, but it was already u set contract before all this. Everything is difficult with no inspections being allowed, no municipal inspections, etc.
Makes for a tough process if you're trying to get under contract now and close in a regular time frame.
At least in Pittsburgh
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Mitch Messer
Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
6y
@Grace A. @Nicholas LaGatta For the record, as of this Tuesday (3/31/2020), Georgia now allows fully virtual real estate closings, including remote notarization and remote witnessing!

Folks, this is BIG news: https://www.biggerpockets.com/...
3 Reply
Anthony Angotti
Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
6y

They are still possible. But if you can't get the municipal inspections done good luck closing. The dye test and the occupancy inspection needed to close in most of the municipalities comprising the Greater Pittsburgh Area are not happening. If you don't get those you can't close. If those are done or not required then yes you can do the title work and virtual notary and whatnot. That's how we were able to close one. But if that stuff isn't done its not possible.

Additionally if you want to do any kind of due diligence it's almost impossible to get that done right now as far as inspections.

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Jenny Roman
Lender · Member since 2020 · 89 posts · 69 votes
6y
@Grace A. @Nicholas LaGatta @Kenneth Garrett @Brett Peters Glad to hear different areas are open and being able to conduct business as normal as possible. I have encountered appraisers taking the necessary precautions willing to continue their inspections and conduct appraisal for their own livelihood above all. On the other hand, the tenant in the occupied unit did not allow appraiser to enter until he proved being COVID 19 negative so that one is on hold. Let's see what alternative will emerge from the current situation. Above all, we are closing the fix and flip wave as initially preapproved and moving forward !
2 Reply
Michael Tyler
Rental Property Investor · CA · Member since 2019 · 65 posts · 53 votes
6y
Originally posted by @Anthony Angotti:

Additionally if you want to do any kind of due diligence it's almost impossible to get that done right now as far as inspections.

We are in escrow on a place in Pittsburgh. Offer accepted only days before the world turned upside down. We were able to complete a property inspection during the contingency period, but that was two weeks ago now and who knows if that would be possible today.
We managed to get a contractor in there for a bid. He had to wait until receiving an exception from the state government to keep operating his business during the isolation period. Another contractor would only give a bid based on photos taken by our agent.
Next we see if the city plays nice, like Anthony mentioned. The property is vacant and we have no bank financing involved. That may explain how we’ve gotten this far without hitting a wall.
I imagine it’s different in every state/county/municipality.

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Brett McManus
Minneapolis, MN · Member since 2020 · 94 posts · 161 votes
6y
Closing on my first duplex in Minneapolis in 2 weeks. As of now all inspectors/appraisers are still in operation and closings are happening either remotely or in 2 separate rooms be with paperwork being shuttled.
1 Reply
Tim SwierczekPro Member
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Brett, in Minnesota the closings are happening in 2 separate rooms. Technically you can do virtually closings but the investors and wholesale lines of credit are not prepared for it. They are required by Fannie Mae to set up digital vaults, they just are not ready. Fannie is pushing them and it will happen but it's not a reality yet at scale.
1 Reply
Naema N.
Willowbrook, IL · Member since 2015 · 18 posts · 3 votes
6y
@Kenneth Garrett

Were your properties in Cook County? I am under contract on a property in the South Suburbs of Chicago and was told week before last that the County has closed down completely and will not be doing any inspections in March or April, which means we can't close until after they re-open. Are you not running into these issues?

Thanks

Naema
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Stephen KeigheryBusiness Member
Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
6y
@Grace Agb I bought last week, it was a cash purchase in as-is condition so there wasn't alot to organize
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Storm S.
Real Estate Agent · Santa Barbara, CA · Member since 2016 · 518 posts · 283 votes
6y
@Grace Agb my client closed on a property 2 weeks ago, a few days after the state shutdown.
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Jesse Kindra
Rental Property Investor · Newcastle, WA · Member since 2016 · 86 posts · 39 votes
6y
@Kenneth Garrett @Naema N.
Hi Kenneth and Naema - I would like to hear where both your properties are as well as experiences with the market in the south suburbs. I have a property under contract in Hazel Crest and I'm wondering how the area is doing. Note that this is a foreclosure and would be purchased all cash so I don't expect too many issue there. The challenge would be to get a contractor to go in and complete the scope of work, and then go through any point of inspections prior to renting.
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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Jesse Kindra
My properties are in the north and northwest suburbs and southern Wisconsin. People are still looking at properties, but it certainly has scaled back.
1 Reply
Jesse Kindra
Rental Property Investor · Newcastle, WA · Member since 2016 · 86 posts · 39 votes
6y
@Kenneth Garrett
By scaling back, what do you mean? Sales? Showing for rentals? Both? I appreciate the insight.
0 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Jesse Kindra
Rental showings are pretty consistent, not really a slow down. The for sale property listings showings have definitely slowed down.
1 Reply
Matt Engle
Real Estate Agent · Chicago, IL · Member since 2013 · 25 posts · 6 votes
6y
@Naema N. I'm a Realtor in Chicago and inspections, closings, etc. are still happening. I had clients close on Friday 3/27 and Monday 3/31. I also had an inspection for a client on 3/27. Per the ordinance Real Estate Activity is considered an essential business. There are some restrictions like tenant occupied properties cannot be shown but vacant and owner occupied can still be shown. I'm not sure if things are different in the South Suburbs though.
1 Reply
Matt D.
Flipper/Rehabber · La Jolla, CA · Member since 2012 · 43 posts · 8 votes
6y
I’ve noticed some of the flip lenders starting to get a bit paranoid. 3 weeks ago they were doing everything they could to make a deal. Lendinghome as an example has raised their rates, Fico score requirements, and the Loan to Cost is less favorable. I believe the banks are still confident but the hard money/flip money is being very cautious. However, some of the deals I am working on are in Vegas which now has one of the highest unemployment rates in the country. Is anyone out there seeing the same thing?
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Randy Lee
Rental Property Investor · Atlanta, GA · Member since 2018 · 43 posts · 20 votes
6y
@Thomas M. I completely agree with everything you said. This is what is playing out in Atlanta as well.
0 Reply
Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
Closed on one & 3 more in the works. Lawyers office is drive through for drop-off checks, sign & go etc.
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