Posted by ScottE on April 26, 2002 at 20:23:36:
I think you really have figured things out when you can step back and re-evaluate what’s best. You made a good business decision. Selling to that couple would have been one problem (upgrade fever) after another. It sounds like she wanted a $80k house for $40k.
Great job and congrats on a good L/O tenant!
Scott
I talked a buyer OUT of buying my propertylong - Posted by Dee-Texas
Posted by Dee-Texas on April 26, 2002 at 19:35:30:
Sometimes you have to just go with your gut feelings.
I had a 3/2 rehab almost ready to go. I’ve never had this many people sending in applications for a house and it’s not better than the rest. I had weeded down to two. The youngest couple had great credit. I sent them to my mortgage broker, she started an FHA loan. Whew! I asked question and got some great answers here and about bugged her to death trying to make sure my house would appraise. The girl of the couple is doing all the paper work, calling, looking up the tax information for the boyfriend. They aren’t married yet and he will be the only one on the loan (he’s got great credit) the whole time I’m listening to her and going though all the rehab and extra rehab for FHA, I keep hearing the same thing…she wants this house why? because of the bay window, he doesn’t care just wants out from mom and dad. The more we go though the rehab they will have to add central heat and air which adds $5K wants a new roof adding another $3K, this thing is mushrooming. I’m looking at a house (mine) that I know won’t appraise and she keeps adding things in that might make it appraise. So now the tab is up to $42K on a FHA, we had to do a lot of nitpicking things that we were not going to do and I still didn’t think it would appraise.
I felt like I was dragging a rock…nothing was going right because this deal wasn’t suppose to be…I finally understood that and called the girl. Told her about a house that was for sale, that was brick, FHA approve, CH&A and was $39K. I felt it was better for them and me. Yes, I lost a cash deal IF the house appraised but I felt it was the right thing to do. I hope if my son ever gets into that situation someone will say stop and point him in the right direction.
I L/O’d the house (bought/rehabbed 18K…3K down…$475 a month 18 months L/O with a price of 36K) to a couple that had been renting and paying on time for 7 years. The landlord gave them 30 days and told them to be out…he sold the house. They had one late pay in 7 years. Yes, I will have to wait a while on my money BUT my T/B’er are happy, the kids are happy and I can sleep at night.
Maybe some will think I’m not too bright by passing the quick money but I enjoy having a business where everyone wins. I heard once it will come back a 100 fold. smiles
Great real estate investing,
Dee-Texas