I finally closed... (Union Square Baltimore 90-180 day challenge)
-Initial offer made 11/8/17 (I was on my 90 day challenge twist... turned into 180)
-ratified contract 11/16/18
-Purchase Price: 41K
-Bro Science Rehab Cost: 20-40K (This is my first one/Kinda winging it)
-ARV: 80-120K (2 doors down sold for 75K last month. Across the street had a pending sale asking price 115K, but the listing was removed today. I don't know what that means. Contractors were working today, so, I knocked on the door and asked for a card... He didn't have one, but I took his name and number. He quoted me 65K on a full gut job (bro science). I don't like the fact he didn't have a card, but their work was waaayyy better than the one 2 doors down. He also said he rehabbed another one on that side of the street. Mine makes 4 rehabs on the block and UMD has tax incentives to buy in my hood.)
-Long term rental in an appreciating area (Expecting $1100-1300 in rent)
-4 Home Inspection Extensions (could get the water turned on)
-4 Appraisal Extensions (couldn't get the hot water heater working)
Now we're at the end of January. Up against a deadline. We finally get the go ahead from lender all contingencies have been met. Lender only needs a few days. The seller wont extend. Keep in mind they have been the reason for most of the delays to this point.
-Ratified contract #2 2/16/18
-Lender can't close on time... Again...
-Seller won't extend... Again...
Yeah uhhh... No, unacceptable. I read my contract to figure out who is signing for Freedie Mac. I get my google/linkedin on and find out who I need to pull up on.
-I Pull Up (drive to sellers title/lawyer get extension albeit $50 a day per diem... Whatever.. $400 to keep my deal alive)
-Extension through 3/5/18
-Lender ask for extension Friday at like 4PM... says they can't close... again...
-I'm livid... Keep in mind lender is my primary bank (personal\LLC)... Mortgages just are not their thing. They don't even have docusign. I'm driving back and forth putting ink to paper.
-Pull up twice on Friday... set a meeting for Saturday
-I take out a personal loan for $25K (Should've done this 3 months ago, but I wasn't being creative enough... Apparently, I have instant approval credit??? Whatever... $540 a month for 5 years. No early repayment penalty.)
-Hadn't heard anything as far as an extension as of this morning
-Realtor calls frantically this morning implying seller doesn't want to extend... again...
-I pull up... again...
-I feel her out, and I'm pretty sure I could've gotten another extension, but at this point I just want to close the deal.
-I was under the impression we needed 48HRS for the HUD, so, I'm thinking I need an extension no matter what. However, in order to keep my deal alive. i inform her cash is now an option. she says we can close today.
-My bank has a branch across the street. I send the wire transfer. Then I pay for insurance/reschedule walk through and closing from the parking lot.
-An hour later I'm officially a real estate investor, or at least rental home owner. I'm not sure if I can call myself an investor until I've actually made some money.
-Around the same time I'm calling my lender to let her know what happened, they send closing docs to title company. Too late. She's happy that I closed the deal and happier to be rid of this whole situation, but mad that I kinda left her out of the loop. Whatever, I lost faith in them to close the deal... Sorry
-I broach a cash out refi situation
-She say's her whole team hates her over this loan, and that if they see my name everybody is going to go crazy. Meh, my payment is roughly the same (actually a little less) except I have to pay my own taxes. The interest rate is almost double, but I'm technically already free and clear. Worst case scenario my W2 means I can stomach the loan payment, and it's only 5 years instead of 30.
I'm leaving out a whole host of other obstacles and hoops i've jumped through, but you get the picture... 11/8/17-3/5/18. Now comes the fun part... I think...
Thanks for all the help along the way. Back to work.