All Forum Posts by: Jaison Emmanuel

I would definitely link with people to see if they want to partner up on some deals to buy your first property... The hardest part is getting initial money to buy property.. once you networked to get people to invest, you set your self for the next investment as these people are more likely to invest with you again.   Suddenly your 20k is now 40 or 60K...  higher than initially, the more money you have,  the bigger the returns or cash flow.

@Matt K.   Yea.. they were the strongest i thought.. they also were paying for 80% closing fees.  But here we are. 

@Matt K.   Well now I have to figure if those people still willing to buy. Its been 2 months since they offered.  and closing is supposed to be next week.   Waiting around for another potential 90 days is long and wast of time. 

@Joe Villeneuve thanks for responding,

Howe came I present that option to the Buyers?

Also, I have a hard money loan on this house.

@Brian Garrett My agent is filing the paperwork for readjustment.  and I will let him know about handing him the other offers. 

Thank you for your time and quick response 

@Matt K.   So I had 8 offers... 

The first offer I accepted, it was a cash deal. turned out he offered many homes and picked the best 4 or 5 homes (mine was not on that list) then I took an offer with someone, in which they didn't like the inspection report. 3rd contract was with someone who lost their job during the loan process. And so I took this offer with FHA.. they had a family.. and wanted to make sure they get this home.

@Michael Randle   I think $125K is where it should be, however, the house has been on the market for 5 days.. and basically, I Have had 8 offers between 130 -134K. (technically speaking it was on the market for 4 days) 

I do Have a hard money loan. so I want to get rid of this quick.  

My agent is doing option B right now as we speak. 

Thank you for your response. 

If you look at it like a numbers game you need to ask yourself the following.

First and foremost:

"Is the appraised value of $125k accurate?" -If it is you have to either a) lower your price b) exclude certain buyers c) fight the appraised value

"How many months can I float this loan (132k or whatever you financed) before I lose out on a potential $7k I would have to eat if I lowered my price?" -Lets pretend it is 7 months. ($1k monthly payment on your finance)

"In 7 months will I get another offer of $132k?" -depends on the market and price point.

"Will that other offer, be able to make up that $7k difference?" - My gut would say no, just because you are at such a low price point already.

So what are your options?

A) Sell for $125k, take your lumps, make a little less money, learn some lessons.

B) Submit documentation to the appraiser and try to get that appraised value raised.

C) Leave it on the market and slowly bleed out that $7k until another offer come along.

D) Set up a lease to own option with the people looking to buy the home.

I am sure more experienced investors can come up with a better idea but as it stands now those seem to be the options I see. And your response might change given how you financed the flip (hard money vs personal funds) and what your long term goals might be.

@Brian Garrett Actually the comps do not support $132.  there hasn't been a sale in this neighborhood in a while. I do think the $125k is probably where it should sell..  But I will be at a loss.  

and I have had 8 offers, all offering at 132 or more. 

Hello BP members...

I have a flip home that's in the contract for $132K.

The buyer is going thru an FHA loan, and the appraised value came out to $125.

The buyers don't have the 7K to cover the difference, and b/c its some sort of FHA loan.. they pretty much have little Down Payment.

Can anyone suggest any other option for the buyers (and or me) so that this deal can close at 132k?

- Jai

@Sharon Tzib   Thanks for the response.

It is not a flooded home.  and the property is not in siennna.. its north of that near, the stafford border. 

I am using a realtor, and its there is a listing on HAR.   a lot of people have seen it, but few have made offers.