Emotional roller-coaster
In the past week I've had 3 *nearly complete* deals fall through. It's been this roller coaster of "Oh crap, here we go!" to "Yes! This is going to be fun!" to "So sad. :("
The first one - house is a great neighborhood, 1 mile from my place. Seller asking $170k. Needs $25k of work. Retail for $230k. This one doesn't fit my Max Offer formula, but the seller agreed to finance for 6 months, so I would just put the money up for renovations. After all the fees I would walk away with $10-$15k. I figured that return on $25k of investment was worthwhile. Anyway, verbal acceptance and a hand shake, have my attorney draw up the document as discussed, his attorney scares him away and tells him that I'm shady and won't deliver and he'll have to foreclose on the property to get it back. Hate you attorney! (Even if you are just doing your job and warning of worst case scenarios.)
Second - crazy deal I was explaining in the last post. The house was perfectly maintained but dated, which was scary for me when trying to find a tenant buyer. The couple called me back the next day and said they wanted to get out of it now, so we ripped up the contract (because I'm not a jerk). It actually relieved a giant stressball from me. :) There still may something there though. I told them what to do to rehab it and gave them some numbers, but they said they might want me to oversee the renovation. We're meeting next week to discuss.
Third - potential rehab property that is 2 hours away but is a friend of a friend's dad, bad financial situation, just wants freedom. Perfectly aligned with my Max Offer formula. I hesitated due to the 2 hour drive, and another investor made an offer last night that he decided to accept. Probably for the best, but dang.
Anyway, gotta pay your dues, right? I've also made bids of 4 auction properties and put in 2 MLS offers, all rejected. That puts my rejection level at 9. The stats are about 1 in 15 accepted, so let's hope the next few are gems. :)
The first one - house is a great neighborhood, 1 mile from my place. Seller asking $170k. Needs $25k of work. Retail for $230k. This one doesn't fit my Max Offer formula, but the seller agreed to finance for 6 months, so I would just put the money up for renovations. After all the fees I would walk away with $10-$15k. I figured that return on $25k of investment was worthwhile. Anyway, verbal acceptance and a hand shake, have my attorney draw up the document as discussed, his attorney scares him away and tells him that I'm shady and won't deliver and he'll have to foreclose on the property to get it back. Hate you attorney! (Even if you are just doing your job and warning of worst case scenarios.)
Second - crazy deal I was explaining in the last post. The house was perfectly maintained but dated, which was scary for me when trying to find a tenant buyer. The couple called me back the next day and said they wanted to get out of it now, so we ripped up the contract (because I'm not a jerk). It actually relieved a giant stressball from me. :) There still may something there though. I told them what to do to rehab it and gave them some numbers, but they said they might want me to oversee the renovation. We're meeting next week to discuss.
Third - potential rehab property that is 2 hours away but is a friend of a friend's dad, bad financial situation, just wants freedom. Perfectly aligned with my Max Offer formula. I hesitated due to the 2 hour drive, and another investor made an offer last night that he decided to accept. Probably for the best, but dang.
Anyway, gotta pay your dues, right? I've also made bids of 4 auction properties and put in 2 MLS offers, all rejected. That puts my rejection level at 9. The stats are about 1 in 15 accepted, so let's hope the next few are gems. :)
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