All Forum Posts by: Peter Sanchez

Post closing occupancy is not uncommon here where the seller might need time to find a new place in a tight housing market.  It happened when I bought my place, but the seller (if I recall) had to pay an amount based on the number of days of the pro-rated portion of my mortgage, taxes, and insurance plus x%. And the post closing occupancy was for a max of 30 days. They ended up staying a little over a week, but were packing a lifetime of belongings, so it's understandable. 

I think it's crazy that your seller wants to stay there for free though. After you close, its your house, not theirs.  They don't get to stay for free in your house. 

It's easier to buy stocks than buy a house, but Charlie Munger (Warren Buffett's business partner) has sometimes gone for years without buying anything and just sitting on the cash.  He said "It takes character to sit with all that cash and to do nothing.I didn't get to where I am by going after mediocre opportunities."

Your guy said it needed $600 in freon, which you should've added before the closing to keep it in the same condition it was during the inspection (i.e. an A/C system blowing cold air). 

His guy says it needs a new compressor at $1700, which may be true or it may be overkill.  

Why don't you split the difference and offer him $1000 and you can each get on with your life.  He can probably take you to small claims court for $1700, and if he's got a 50/50 chance of winning, and a 100% chance of making you miserable for a few months while the papers fly back and forth. 

This is your first house sale, but if you want to be in the business long term, then it won't be your last house, so take the emotion out of it and think if your time and energy would be better spent fighting this guy or looking for and working on new deals to make you way more than you'll spend to get this person out of your life.  

Don't rent or do business with family or friends.  My mom made the mistake of renting her condo to my idiot cousin because he and his wife and kids needed a place to live, I don't think there's been a month that he's paid on time. 

A couple of before and after pics, but I would love to see more as well as a more detailed rundown of the numbers. 

http://money.cnn.com/2018/06/05/real_estate/house-...

It's also surprising that a "run down" house in Malibu costs almost a million dollars. 

If it took them 2 weeks to come up with $475, what makes you think they will come up with $975 (plus $50) by the first of the month, two weeks later? 

 Is the closet the only issue?  

1) at $23k there isn't a lot of room to negotiate down especially since there are closing costs and the seller has to move, so I'm not surprised they won't go down. 

2) from the description it sounds like it needs a lot of work and adding a closet (literally just some studs, drywall and a door) is not going to cost much if you do it while you are tearing up, replacing and fixing up everything else.

Are you sure the issue isn't just that it's your first and you are getting nervous?  If so, go over your comps again and your repair estimates and get comfortable with it.  Even if your wrong it's easier to recover from a $50k (Im including repairs) mistake than a $200 or $300k mistake. And if you go over the comps and you still think the numbers look good, then find a way to power through it and you will have one under your belt and will be more confident and competent in your next one. 

I know there are people who make a living doing this, and people who make a living selling courses telling others how to do this, but I wouldn't buy from or sell to a wholesaler.  If you wouldn't sell your own property to a wholesaler, or advise your grandmother to, why buy from them?  

Put a lot of the little extras in there that don't cost much but that people appreciate for good reviews (a coffee maker with pods, an ironing board, a few snacks , a sixpack of local beer, etc).

Also, I use Airbnb to rent out my basement apt to tourists and to find places to stay when I travel.  If you use Airbnb yourself a few times, you will see the difference between a good and mediocre host and can adjust accordingly. 

And, try setting the price a little lower at first, then once you get a few 5 star reviews, you can raise the price.  

So he doesn't have bad credit, just no credit?  I don't think it's bad. You can't get into trouble if you've never borrowed money.