Update on my first offer that was accepted

Next time, or even on this one--

go back in! Once you get to the dance with bank, you're in! get some bids during due diligence and go back to the listing agent or bank and say-- hey! This prop is in way worse shape, if I'm going to make this work I have to......
and present the bids from GC's and say I can only give you $X...

Yes you CAN counter after you are in contract.

I have only cancelled a deal once. I milk a deal for all it's worth.

Keep it up Tammy.

-- Tina

that's right... onto the next one! keep it up, and after the 25th you'll have your deal

but Tina does have a good point, instead of cancelling, negotiate with the bank! they don't want to keep those properties, especially if you show them that it is a problem property- draft a good estimate of repairs and submit with your change of offer...

Once your in your in, this is a great oppotunity to see how motivated they really are to get this off there books. Run your numbers & make a even lower offer... Oh I love this REI stuff...lol...

Tammy, I would go back to them as renegotiate the price after you do your due diligence. Have you taken your contractor there? I would renegotiate as long as your numbers work right for you. If you are dealing directly with the bank, this might also be a good opportunity to establish relationship with the lender.

I've negiotated WAY lower AND convinced the Lender to loan me the $$$ at a reduced interest rate -- noting that this IS a WIN Win for each of us

1. toxic asset off their books
2. New loan in place

Dont stop...learn to Play with them - its actually fun...and profitable

Tammy, I think you are in the driver's seat. The bank most likely doesn't know the condition of the property and you could make this work. Banks remember names and you don't want to be on that list! I bet you can get this property with some added advantage in your favorite.
Raymond

and it is very good advice, except for in this case. I've talked with several people about town and no one wants this house. It is a crack neighborhood and was told it was a ghetto within a ghetto. Not only that my general contractor told me the house would take so much just to get it livable and you'd never recoup money. Talking 70k in repairs and house comps in the neighborhood are only 3K. Yes, that is not a mistake in numbers there. Thank you all though. I don't know if they could give this house away, okay maybe they could give it away.

and they used outdated pics to try and sell the place.

Why did you not know this BEFORE you made an offer?

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

This has always been a MAJOR issue when dealing outside YOUR area

Farm YOUR area...I work in a 10-15 mile radius normally and have found Great deals within 2-5 miles

but, partner wanted to go ahead with and I did not know it was that bad of an area. As for the house, we made offer based on research online and pics the bank provided. We knew we had our inspection period, but when it was checked further we found it was misrepresented to us.

We figure checking all the houses before hand is time consuming so we did as much research, before actually getting in the house to see.

Tammy. Dont stress on it.
Was it exciting?
Did you learn something valuable?
All part of the process.
NEXT:)

we're still talking about the same property??!! you should have moved on already, and be talking about the next property!! great experience... keep moving forward... you lost nothing, gained knowledge!

"We figure checking all the houses before hand is time consuming"...not to mention the price of gas these days. If you are using the 25-1 strategy, you can't look at 25 houses to make offers on.

That is what we figured as well. It would be very time consuming. Okay Valerie I am moving on.............LOL

yep, you're good Tammy-- you got all the right moves. Sometimes you have to pull out, when it's just that bad. I just had to do it on one that had under slab water, probably from sewer. I tried so hard to create a deal out of it, but...

Yeah, that was the one I cancelled on. And, no I did know the area, but I hadn't looked at it before I offered.

Well NOW you know how bad the area is!

Good job--

Tina

It didnt work out, move on to the next one. They are always experiences that will make you stronger!

Experience makes you smarter, so move on with the knowledge you have gained. It is there, you just have to find it...Jan