My first deal part 2

Congrats on getting your offer accepted. I pray that this property meets your approval and satisfaction.

Congrats on your deal hope everything goes as plan with the triplex.

WAY TO GO! I HOPE EVERYTHING WORKS OUT WITH THIS DEAL.
BEST WISHES,
SERENA

I was supposed to have property inspected last Friday but bank rep did not get utilities turned on on time so inspections is scheduled for this Friday the 30th. In the meantime I decided to try and wholesale property, and listed and ad with craigslist and local REI club website and have many interested buyers. I'm very excited, because this could be a quick 10-15k profit. One of the calls I got from interested party, told me he was familiar with the house and he thought the boiler was bad, and plumbing needed repair. He said a 30k fix. If that is the case, may renegotiate with the bank to drop price, so I can drop price for the buyers and they can still make profit on the deal.

Cathy

WHERE IS THE PROPERTY LOCATED CAUSE THAT IS A GREAT PRICE FOR TRIPLEX, CONGRADS ONCE AGAIN.

Good luck with this potential REO deal. It appears you may have several options that include a quick assignment, buy/fix/flip, or buy and hold for a future stream of income. I hope this works out for you andall your hard work and effort is about to pay off. Please keep us updated and we wish you the best on this potential deal. This is very exciting! Believe and Achieve! - Joe

Congratulations! Being determined gets you to your goal. Hope to hear great news on this one. We'll have to celebrate as a group at next month's REI Club meeting! (and congrats on the connections!)

Rina

Had the professional inspection done today, worth every penny. The HVAC system was not winterized and looks like all the radiators are craced and many couplings to pipes in basement broken too. Was kind of expecting it. The good news is the rest of the place is in good shaped, roof, foundation, windows, floors, electrical. My RE agent has notified the banks RE agent to let them know we would still like to close next week but are interested in a reduction in price. Will see how that comes out, wont know unless you ask right? One potential buyer came by while I was there, and is very interested. Just emailed the others, and they don't seem too put off by the HVAC problem. So need to hear what the bank has to say. My 5day inspection contingency is up on Monday, hopefully they will get back to me, or will have to ask for an extension.

Cathy

Have not heard back from the bank, I know I won't on a weekend but since closing is supposed to happen on Friday, I'm getting anxious. My RE knows what I am looking for from the bank as far as price reduction, he also told me they have written in agreement that they have an option to fix as well. I have a feeling they knew about this problem, because, the property was under contract back in August, but didn't close. The said it was financing, but know that they usually accept cash offers. All the pipes in basement are also wrapped in Asbestos, so that is another thing that has to be done. I included pictures with my request. Hope to hear on Monday.

Cathy

I wish you the best on this deal and hope i goes all the way for you, that is a good idea for sending in your pictures with the reduction offer.

Everyone Can Make A Difference!
John A.

The bank or should I say bank rep called my RE agent to say that the bank would be willing to make a reduction in purchase price for the HVAC repairs needed, based on 3 estimates. They are willing to get two, I have to get one. Should be no problem. Had to push closing back a week, (it was sched for this friday,) so we have time to negotiate the price based on estimates with them. I like that they didn't say no and are having a dialogue with me!

Cathy

It sounds like things are moving along for you. This deal is a good learning experience even though it is taking more work on your end. If you have to get one of the HVAC estimates, you may want to consider getting 3 estimates on your own to see what price it comes in at. That way if the bank has 2 really low estimates you already have your leg work done and can justify the number based on your estimates. I hope this helps. Good luck with this potential deal. Believe and Achieve! - Joe

Way to hang in there. when one deal knocks you down, get right back up and start all over. You make no progress by sitting around. Congrats on a great deal and I will watch for the next one.....Jan

Thanks to all you who are wishing me well on this deal, the banks RE sent an email to my RE stating that they are willing to extend closing till next friday so I can get my homework done, (repair quotes) but "the seller will not entertain a reduction in price":( Oh well. So when I advertised this property to wholesale I left room for negotiations with the buyers, now that negotiation room will become the bottom line. One of the potential buyers wants to meet tomorrow at property, he went through prop last friday when I was there, so I am expecting offer from him, but I have a list of buyers that I've been keeping in the loop via email, do I want to let them all know if I have an offer on the table? How much money is a good amount to make on a wholesale deal? I'm actually feeling kinda guilty for looking at 10-15k profit. I want to be fair to my buyers so they will buy from me again. Although I wasn't planning on wholesaling, I am wanting to buy and hold so I may never have a wholesale deal. Hmmm... need to sleep on this, don't want to be greedy.

Cathy

Cathy, if you can get $10K or $15K, go for it. If you are leaving them enough "meat on the bone" as Greg would say, then why SHOULDN'T you take a good cut. Just my opinion. (From someone who has yet to make that much on a wholesale deal, so take it for what it's worth. lol)

See ya tomorrow.

Rina

After getting a couple of estimates as to what it would cost to get new HVAC system and asbestos abatement, my RE agent and I have written an addendem asking for an additional 12,500 off the my accepted offer price. We did not include plumbing, other rehab or mold abatement , because we are trying to get the bank to see that we were expecting to have to do work, but not expecting it to the extent it was based on the price. We will be submitting to bank on Fri. I am very interested to see what they have to say. We already sent pics. of asbestos and cracked pipes from HVAC, but will be submitting pics of mold and plumbing issues so they can see that there is still much work to be done on triplex. On a side note, I have to say I was very surprised at how inexpensive the asbestos abatement quote was. all the pipes in the basement were covered and he is charging me 2500 the whole thing, done to epa standards. Impressive. Does anyone know how much you can get for the radiators at a scrap yard? I have 14 matching ones most of them cracked.

Cathy

Well the bank has rejected my request to reduce my offer by 12500. I have contacted the buyers to let them know that it is now time to commit or not and low and behold, they all have disappeared. Another reason to have them lined up BEFORE you start wholesaling the property. I wasn't planning on doing any wholesaling but after I saw this prop I thought it would be a good one to try it on. I am going to let this one pass me by, with many lessons learned, because it does not fit into the buy and sell with lease option strategy that I am working towards.

Cathy

Cathy, have you come across anything else since the triplex deal fell through? Was just wondering because you were so persistent in not letting the obstacles before you, stop you. It was inspirational. Are you back up and running again? I hope so.

Hello cathy,congradulations on your success,can you tell me where you got your buyers,THANK YOU!