All Forum Posts by: Ursula B.

Hi everyone:

I'm in a situation and looking for a little advice. I made an offer on a property sight unseen and the seller accepted. Problem is they took an extremely long time to produce the signed contract, and when they did, it was missing things (addendums, initials, etc.). I couldn't forward it to my attorney to start the title search because the docs were incomplete. I told the Seller i wouldn't hand over the EMD without a complete contract.

The listing agent's broker suggested we terminate the contract and start again.  I reluctantly agreed, so three weeks later we're back to square one.  I've signed the termination agreement and the first deal is officially dead.  Now the hard part.  I didn't have the benefit of an inspection before I made the first offer, but was still fully committed because it's what we agreed upon.  Since I now have the inspection report, which revealed additional problems not disclosed by the seller, I'm considering revising my second offer.

Would revising my offer be in poor taste?  Completely acceptable?  I don't want to turn off the buyer or the other agent.  I'm thinking of reducing my offer by $1K (I found out the windows are painted shut and will have to be replaced).

Your insight is appreciated.

Ursula

@Dawn Anastasi agree!

@Gautam Venkatesan Not specifically. I remember any branch active or vet, government employee, contractor, or family member of anu of these groups. May be other categories. Check out their website.

Ursula

Welcome to Bigger Pockets, Kevin, and THANK YOU for your service!

Good luck to you in your real estate endeavors.

Ursula

@Peter Tkachenko Greetings from Stone Mountain. Best wishes to you!

I've always loved houses, but never knew why. Monopoly was my favorite board game as a child and I usually ended up owning the bank, but I never realized it could be done in real life. I got hooked on the house flipping shows in 2005, decided to get my brokers license so I could find and flip without actually working as a true sales agent. I flipped one house while working a full-time job. Wasn't really my thing. I bought a couple of additional houses to buy and hold. I love being a property manager, and plan to build my business managing for others in a few years. For now, I'm continuing my buy and hold strategy with the goal of having enough cash flow to replace my full-time income.

Best wishes to you as you venture into the world of real estate.

Ursula

Good evening everyone:

I mentioned in another thread that I found a credit union that would do business loans backed by real estate. Here's the thread: http://www.biggerpockets.com/forums/311/topics/123956

I've been asked about it a couple of times, so I wanted to give an update in the open forum in the event anyone else is looking for non-conventional ways to finance their deals.

The credit union is Navy Federal. I applied for a business loan on May 4. Today I got a phone call approving my loan for the following terms: 75% LTV, amortized for 20 years, 5 year balloon, 5% rate, 1% origination fee and appraisal required. I am refinancing two properties, one mortgaged and one owned free and clear. They are rolling both into one loan. Business loan with a personal guarantee, I was told it will not show on my personal credit report (skeptical but we'll see). They also approved a $10,000 credit card. I didn't apply for the card, but I guess I'll take it to build credit in my business name. I don't like the balloon but it's MUCH cheaper than hard money and I can have it paid down significantly in 5 years. This is an out-of-state loan. I live in GA, my properties are in NC.

While waiting on the credit union I also got the idea to check out Lending Club from @Dawn Anastasi. Applied for a loan, $20K, 11% for 60 months with a $1K fee. A 36-month loan would have been at ~8%. Filled out a short form, and one investor funded the loan in a matter of hours. Did an email, telephone and bank verification, still awaiting a word if they need anything additional from me to move forward. Not sure I will take this loan since the credit union came through on the business loan.

Hopefully this is helpful to anyone looking for non-conventional financing ideas.

Ursula

Thanks for the reply @Bill Jacobsen . I'm still awaiting docs from the seller. The more I think about it, the more I'm turned off by the water leak. I might cut my losses at the $350 inspection. I'll keep you posted.

Ursula

I purchased a $399 Old Republic Warranty in March for an investment condo. So far, they have paid $230 to repair an electrical issue, $150 for a leaking toilet, and just authorized the replacement of the the HVAC compressor. For the HVAC repair, I have to pay $240 that is not covered by the warranty. Last time I paid for a compressor out of pocket it was $1,600. So after this repair I will have paid $819 for $1,880 of work. If they never repair another thing in that unit, I think I've gotten my money's worth.

Good morning BP:

I'm struggling with whether or not I should pull the trigger on a condo I have under contract. To me the numbers make sense, but there are a couple of things that concern me. 1) There's an active water leak from the upstairs unit (appears to be confined to the bathroom in the downstairs unit); 2) There is a piece of roof line exposed at the top of the building exposing rotten wood. The unit backs up to the woods and a golf course, so the roof line cannot be seen unless you're standing in the back, but it makes me wonder about the HOA (haven't received the HOA financials yet). As for the water leak, the HOA (who owns the downstairs unit) is selling as is and I don't expect them to fix it, but I won't be able to fix it without the cooperation of the upstairs owner/tenant. Would you go through with this purchase? Here are the numbers:

ARV: $35,000

Purchase $22,000 - $660(commission) = $21,340

Repairs - $7,000 conservative; $10,000 budget

Rent - $6,600 (conservative)

Taxes - $307

Insurance - $186

Vacancy - $132

HOA - $1,620

Maintenance - $600 (warranty + service calls)

PM - $660 (although I intend to manage myself)

Mortgage - paying cash, then refi with a HELOC - $1,224

Thank you in advance for your words of wisdom. -Ursula

No. I require all prospective tenants to see the property first so they know exactly what they are getting. Also, security deposit and first month's rent must be in certified funds. You can't reverse a money order or cashier's check, but you can certainly reverse a Paypal charge.

If you have several approved applicants lined up already, why is this one even being considered?

Just my .02.