Posted by Al on August 08, 2005 at 23:45:48:
Dealmaker,
The problem is that I don’t have the $120,000 or the $20,000 to rehab. My credit score is pretty good that’s why I’m borrowing the money. Any other suggestions/advice would be greatly appreciated!
Spouse - Posted by Al
Posted by Al on August 08, 2005 at 20:03:01:
How does one sell a killer deal to his significant other. I have the opportunity of purchasing a property for $70,000 under fair market value (foreclosed property). She doesn’t like the house and I can’t get her to realize this is a temporary thing. I will be receiving $40,000 within a month after closing ($20,000 for the rehab/$20,000 in my pocket). I will sell the house 2 years later for another $15,000 in profit. Any advice/suggestions would be greatly appreciated!
Re: Spouse - Posted by Brian (UT)
Posted by Brian (UT) on August 10, 2005 at 09:36:23:
Al
Listen to your wife now or you can spend the rest of your life hearing about it even if it works out financially.
In 1962 my wife found out she was pregnant and we decided to buy a house. I found a fixer-upper at a great price in Piedmont, Ca a highly desirable area.
We lived in it during the remodel, but I also had a 60 hour a week executive job, which really extended the remodelling time and she hated it. Also she really didn’t like the house when we first previewed it and let it be known. We did come out ahead moneywise.
Learned 3 things (1) Don’t live in a rehab unless your single. (2) To listen to my wife’s feelings about houses, the ones she didn’t like were much harder to sell and I didn’t net as much money after I rehabbed them then those she thought were crap but o.k. (3) Getting it done, and flipped as an investment, and getting on to something else was more profitable in the long run.
And I heard about that house again only a few weeks ago, I guess I’ll hear about it for the next 20 years too.
Brian
Re: Spouse - Posted by advice
Posted by advice on August 09, 2005 at 22:51:41:
Don’t make the wife move into a house she does not like for two years. Especially when you would need to fix it up while living there. That is called a “divorce-in-the-making”. It will not be fun.
You found a house at a great 65% of ARV price. Treat it like an investment, not like some golden goose to nurture for two years while you bleed off the profits and irritate the wife in the process. Turn it fast to make some cash. If you can’t figure out a way to do this deal, when will you ever?
Instead of an OO loan, get a NOO loan even if it is just a hard money loan. If you can’t find enough rehab dollars in your credit cards, lines of credit, or a loan of some type, then find a partner. Get some money out of the deal and use it to move on to the next deal. Time is money. You will make more by doing more deals. Skip the two year rehab experiment. Forget about playing musical houses especially if your wife is not 100% in agreement. Treat your deals as investment houses, not homes.
Re: Spouse - Posted by michaela-ATL
Posted by michaela-ATL on August 09, 2005 at 11:51:11:
aL,
2 years - sounds to me, as if you’re planning on moving in and then selling. ALso, your loan looks like an
owner-occupied loan. Can’t blame your wife about feeling awkward. It would be a different story, if this was only a rehab on the side.
Does she like to decorate? Maybe you can sit down and ask her how she would chnage the house, if she could. Let her be part of it. Ask her, why seh doesn’t like the house? Weird floorplan? Small kitchen? Too cut up? Find out, what would make this a house, that she’d like.
Michaela
Put your foot down and do the deal - Posted by Jeff
Posted by Jeff on August 09, 2005 at 11:21:27:
Nuff said
Re: Spouse - Posted by Sean
Posted by Sean on August 09, 2005 at 08:45:57:
Well, you have a choice to make…
Appease your spouse and miss the deal… or get the deal and deal with the consequences of your spouse.
You can try to explain the deal to her, but if she is closed minded, she’s closed minded… you may or may not be able to change that.
If you aren’t able to change it, then you are left with doing a good thing financially and dealing with the emotional and psychological fall out of ramrodding it onto your wife. Me personally I always choose the path that brings the least amount of stress in my life…
There will always be another deal… but for me anyway, there will never be another Mrs… Deals come and go… an spurned woman lasts a lifetime.
Re: Spouse - Posted by dealmaker
Posted by dealmaker on August 08, 2005 at 21:07:08:
Maybe if you explained the numbers in a straightforward way! Which you haven’t done here. You say it’s $70K under FMV. You also say you’ll get $20K for the rehab and another $20K in your pocket. Does that mean someone is paying you $40K for doing the rehab? Or does it mean you’re borrowing $40K and spending $20K.
Then you say you’ll be selling it in 2 years (why wait 2 years?) for another $15K. That’s only $55K on something that you started out saying was being purchased at a $70K discount! What happened to the $70K?
Explain it to us and maybe we can help you explain it to her.
dealmaker
inuyasha kagome doujinshi - Posted by inuyasha kagome doujinshi
Posted by inuyasha kagome doujinshi on January 17, 2006 at 21:04:23:
florida log home guest cabin eagles nest marco island discount nature 2 express kagome and inuyasha fanfictions yukon cabin rentals how to roast chestnuts zenith lcd television things to do delta dell dimension l500r power supply the kitty den nathaniel parker jr moore positioner give him the courage spells trasindo usa ten tec 960 latin love sayings norah e cali elizabeth hoke dickey vincent s hendricks a and e television dump truck mud flaps zuzazu com butler bremer communications macon ga massage internet tv download pothul walgreens website eric copple bella bella dancerella schnauzer decal substitute for meat tenderizer last minute fantasy football ocean front accommodation tidewater michael schnur kevin trudeau profile jaws theme wav deteriorating handwriting symptom south carolina oceanfront golf courses gas catalytic heater perseid meteor shower 2005 donna rustand amy brown tattoos hydrancephaly wildfire tv show blue ribbon clip art tupperware poem what is goit ac dc official website kristi ducati clips paypal hosting domain mosi tampa florida inovision medclr ncop usedtractors martin willie handcart maps special event needs assessment survey jrock aim icons subclassing to pass objects oceanus solar atomic watch 0716789310 short timers calendar charter arms explorer ii recipe for southwest chicken salad lutheran residences usatoday pigskin picks cause bracelets jackson county missouri records edwardmusic free sewing patterns online vampire drawings muay thai certificate princess blueyez password tobacco pipe holders raising toulouse geese leticia ledesma motorola motoinfo free easy pumpkin carving patterns real men of genious car midsize research boyne falls motels friendship poem cards mediatation cassette tapes kentucky dry counties devoir de vacances gratuit flax seed for animals roten com secret door construction home made firecrackers zanesville lasik surgeon tower of babel story facts about nafta directory of canada ottawa tribal best personal websites vx hydrolysate santa helper costume world war 2 ships guariguata venezuela black hills sterling jewelry perl lynx 555 timer applications police code list
rv converter charger - Posted by rv converter charger
Posted by rv converter charger on January 17, 2006 at 21:01:44:
westchiloff artist girls tpg howard the duck dvd show map of all missions 22medical mobility industry 22 uniden dcx520 woman day spa wine enema recipe interacial blogs toyo tire reviews induction stove tops billiesmom history of the sunshine magazine roof truss spacers virginia product liability attorneys collis drill sleeves bugs on floor in basement cheapest grave markers to buy howa firearms oxycodone acetamin grieving mothers poems serials3k klass bbs com freeadultchatrooms jesse a juzkiw harley davidson jewelry men southwestern bell white pages eurogirls net laptop messanger bags groundhog lake rv campgrounds semper fi means gold plated chains men wooden coin boxes halloween skits extended stay hotel manhattan kansas drlunk ladies buns bicycle shoes clipless pedals hp ink alternative pittsburgh railways beal deltron79 army barracks inspection zev of lexx purple leather coats midatlantic golf packages pointy goth shoes sample question and answer interview adult halloween eas marlboro miles store sockit takuya free creative kids stuff green estates comm lasik surgury rochester hawaiian dessert recipes coyotes in iowa irrigation code lessons activities map skills hemispheres descriptions of college majors eugene ban zach slovinsky flygirlz com billwrigley famed chicago hotel big black azz sri lankan devil masks sylvia browne home page saiga 12 forum female orgasims portable clothes steamers lcos dlp lcd review minnesota light recycler oceanic steamship co 1882 hinge locking mechanisms lottery powerball results spirea bush crime psychological profile tenaya goc debra mcfyee play something country lyrics opra winfre 12 volt jumpstart bentinite carbon14 font peak oil and investing deutschlehrer gesucht hamburg thunderstorm pictures kanni amma 05 06 cadillac lease specials ghost troop captain may adult moview donnan schenectady new york boat inflatable sale alpine star hats merrell moc eucalyptus new orleans prophecy canada birth records cole dist fuji a 101 profits permanent links foundmypony com 1939 plymouth parts
That’ll be great for his marriage …n/t - Posted by michaela-ATL
Posted by michaela-ATL on August 09, 2005 at 11:52:15:
…
buy and sell now - Posted by ken in sc
Posted by ken in sc on August 09, 2005 at 14:34:48:
Al is right, no reason to wait a year or two to sell. Borrow the money any way you have to, fix it up then sell!
And Clint is right - take your wife on vacation with some of the profit or buy her something extravagant. She will deserve it after she puts up with your moods swings during the rehab process and sale 
And she will be your biggest cheerleader after that, which in turn will make you more money in the long run. Having a wife who supports you is half the battle in my opinion.
Ken
Al… - Posted by Clint
Posted by Clint on August 09, 2005 at 06:46:30:
If your wife doesn’t like the house, will other women? Is it a horrible floor plan, or is it just ‘dark’ and needs some lightened improvements e.g. carpet, paint, etc.?
Show your wife the numbers. Let her know that you indeed will make $55K in (x months).
Her buy in to the deal is paramount! whether or not she does any labor.
Let her know you don’t want to live there, it is strictly an investment.
As far as the $$ goes. Use an ELOC on your own home (if you can) - Don’t pay yourself the 20K - yet. Get it on the back end when you sell, now you are at $75K.
And when you sell, fly, first class to your WIFE’s Favorite Vacation destination!
Enjoy!
Clint
Re: Spouse - Posted by Al
Posted by Al on August 08, 2005 at 23:02:22:
I have an opportunity to purchase a 3 bedroom house (3792 square feet). The asking price is $120,000. After the rehab is complete the house will be worth $190,000. I will receive a 90/10 loan off of $180,000 ($162,000). I will borrow $40,000 ($20,000 for the rehab and $20,000 in my pocket). After 2 years I will sell the house for anywhere from $195,000 - $205,000 ($15,000 - $25,000) profit. Does this make sense?
Re: Spouse - Posted by Natalie-VA
Posted by Natalie-VA on August 09, 2005 at 14:27:45:
You replied:
I agree with Dealmaker that you should get this in writing. I’m not saying it’s impossible, but most lenders base their loan on the purchase price, even if the value is higher. This might be too good to be true which may be why your spouse has doubts.
–Natalie
Re: Spouse - Posted by Natalie-VA
Posted by Natalie-VA on August 09, 2005 at 11:46:09:
Al,
How are you going to get a 90/10 loan off 180 when the purchase price is only 120? Do you already have a lender lined up that will do this?
–Natalie
Re: Spouse - Posted by dealmaker
Posted by dealmaker on August 08, 2005 at 23:16:21:
OK, now the numbers make sense. But why go to the effort of taking out the 90/10 loan? If you pay $120K now, put $20K into the rehab and sell for $195K your profit is $55K, NOW. Taking out a loan doesn’t change that! Or did you think it did?
Waiting two years to get a crappy 7% annual appreciation isn’t worth it. Waiting ONE YEAR to get long term capital gains treatment on the $55K MIGHT be worth it depending on your marginal tax rate.
IMO the best thing to do is buy it, rehab it up to today’s market and sell it now. Pay the ordinary income tax on the gain and look for another one to do. This borrowing money and holding two years (why two, it only takes one to get long term capital gains treatment?) is just foolishness.
dealmaker
Re: Spouse - Posted by Lyal
Posted by Lyal on August 09, 2005 at 07:21:32:
DM,
Sounds like he’s planning on living in it for 2 yrs to get the tax exclusion. That might also explain his spouse’s reticence. Not too excited about living in a house that needs rehab and depending on hubby to do everything he says he will to fix up and re-sell (been there…).
Lyal