All Forum Posts by: Tchaka Owen

@Eric Telese - IMO, a contract without an agreed price is not an agreement. What I'd suggest is you figure out what the property is worth (use a variety of sites to help) and adjust based on the condition of the home, then fill out a contract and hand it to them. 

ps- be sure to leave a little negotiating room in the offer.

Good luck!

@Karl Hadley - thanks for the input! BTW, in regards to Experience 2, have you considered filing a complaint with the state board that governs the title company? That might light a fire under someone. 

I called LendingOne on July 3rd for a scenario, my name and number were taken however I never received a callback. The next day I spoke with a principle at Secured Investment Lending who was very responsive and I closed earlier this week. Both Lima One and Mofin Loans have been responsive so they (along with SIL) will likely be my go-to lenders moving forward. 

It's almost always the price. Every property will sell at a certain price, so if you're not getting offers and you don't see any issues, adjust the asking price. Good luck!

ps - if I were you I would not list it as a 3/3. I'd add up all the bedrooms (7) and all the bathrooms (?) and enter it that way.  

Assuming that the appraisal is accurate, there's nothing wrong with this. The other option is for him to put it on the market at a higher price and he'll still net the same. Buyer will end up paying the agents.

That said, before you jump on it you should keep a few things in mind:

1. Since you don't have an agent representing you, you'll need to write the contract, find a settlement company, schedule inspection, etc. It's not terribly difficult, but can be tedious. You might consider calling an agent (or friend who is an agent) and offer 1% for them to help you through that. You pay out of your pocket.

2. Just because it's FSBO with an owner you know does not mean you don't do your due diligence. If the inspector comes up with issues, go back to the owner and address them (or get a credit so you can address them after closing). Good luck!

@Mike Franco - what is your reason for not charging July rent? It seems that you're a kind man. You tell us that you spent $3000 due to frivolous reasons and you don't know if you should charge her $110 to professionally clean your carpets. I want you as my landlord.

The good is that for the most part she respected your home. That $3k is a sting too harsh to let slide...if I were you, I'd deliver the following in an upbeat and positive manner, "You took good care of the house, which is wonderful. Other than a charge to professionally clean the carpets, I'm going to return the rest of your security deposit". 

 That's like asking, "what's the normal cost of a car?"

@Ebony Blue - what is your exit strategy? Do you see upside to the value of the home? Ie, if you want to refi out of hard money down the line, you'll need to have equity. We know you'll have 15%, but lenders for such investment properties generally want 30% equity (some 40%, some 20%). Will you be there? 
Also, you did not share anticipated rents...….that affects what you do.

As long as the cover has us in long trench coats and dark glasses, I'm down! >:-)

If you are comfortable that the deal will work, then go into your savings. Make sure that you don't go all the way into it though, you need a solid cushion in the event that something unfortunate occurs. Eg, your rehab budget ends up $10k higher. Given that this is a non-auction bidding situation, it may be in your interest to use an escalation clause offering $1000 more than the highest bidder. That way, if you're willing to pay $190k and the next highest bidder is at $180k, you'll get the home for $181k. Your agent should be able to help with that.