DEAL #2!!!!!!!!!!!!!!

Always looking for cash buyers, send me a PM with you contact info.

Chris,

I don't know how, but I didn't come across this blog until today. I am so grateful for the encouragement and energy you instill in me to keep on keeping on. I don't know how you keep these blogs up to date. I intend to join you in achieving success very soon.

I can't wait to read about your next deal.

Tim

The paperwork finally came through on this property! Now they are ready to close. The cash buyer is passing on the property so I am lining up a hard money lender to purchase & renovate the property!

I walked to property with the lender yesterday, turns out his son played Pop Warner Football and he looked familiar to me! He lives in the same town and our kids know each other! Awesome!

I should be ready to close Monday or Tuesday!

That is fantastic!!! Everything works out one way or another!! Keep string those deals!!

Yeahhhhhhhhhhhhh....we closed today....whew what a ride!

This is a long story...so go to the bathroom and grab a drink before you start reading.

3 weeks ago we were having trouble clearing the title, my attorney thought there was going to be at least a 3 week delay in closing and possibly months if they had to reforeclose on the property. Then at the last minute all the paperwork appears and we are on the road for a week long vacation. I put the property out to my buyers list and no one was biting, what to do now???? I called a broker I was working with and he put me in touch with a private money lender and arranged for us to meet at the property as soon as I was back from vacation.

Mean while the property was supposed to close the Thursday we were on vacation, so I asked for an extension. If you have been following this is an REO property that I originally put on offer on back in April. At first they were not going to grant it and thought I was going to back out of the deal. We asked for two weeks but they only gave me one.

So I meet with the lender the Friday after I get back from vacation at the property. He looks very familiar to me, turns out he has a son in Pop Warner Football and lives in my town! He is happy with what he sees, he just wants to bring his wife by the next day. I speak to my broker that day and he says he is happy with everything and wants to move forward. He wants an appraisal to verify the value, which my broker says he can get done in a day. Monday goes by...then Tuesday...then Wednesday...still no appraisal. I am calling the broker several times a day. Turns out the appraiser got real sick and didn't go by the property...he lines up a second appraiser, should take a day or two...we get to Friday, still no appraisal. Then Monday....at this point the selling agent is furious and doesn't think we will close.

They send over an extension for me to sign that says I must close by Wednesday or I may lose the deal. Mid day Tuesday the appraisal comes in, and the values are right where they need to be! The start drafting the loan agreement and it is going over the my attorney that day. They never make it!!! I finally get a hold of the lender directly and explain the situation, he has no idea there was a deadline we were under. The documents are supposedly with my attorney, but she has left for the day and we can't verify. I was supposed to close that day and have no idea if the bank will extend another day????

I have to go off on business to Maine for two days, but we had a power of attorney executed so my wife could sign on my behalf. I get an e-mail today stating that the docs are all set and we can close today!!!

Whew....this was too close!

The hard money loan we have covers the purchase and the renovation. We are going by Saturday to finalize the scope of repairs and then get a contractor on board to do the work!!!!

Yeeeeeeaaaaaaaaaaaaaaaaaaaaaaaaaaaa proves that every obstacle can be overcome if you are presistant great job Chris and many more to come!!!! God bless and continued success on your investments

Everyday for the last week I would come home saying, we could lose this deal. And Thank GOD my wife would look at me and say, it's going to be fine don't worry. I am truly blessed!!!

This is AWESOME! Sweating bullets but coming through in the end cool, calm and collected! What a wonderful outcome!

Was the investor with funds a profit sharing partner?

I ended up getting a hard money lender through my broker. Not the cheapest way to do it, but I didn't have time to line up private money. Plus he put up 100% of the purchase and repair costs.

Way to go, I must read this in its entirety

Way to go Chris!!! I will have a toast to you tonight

what an awesome job you have done and how wonderful to have such a supportive wife. way to go!

Congratulations!

I think you could do a great service to all of your fellow DGers that always have questions about hard money. Take us through your deal and explain what a hard money lender bases his decision to loan on. How do they determine inspection, appraised value, your re hab costs. Are your re hab costs held in escrow and you draw on them as needed or what?
Also, a complete break down of your costs, Points paid, interest rate, are you going to list with a realtor? Finally what you expect to net and how you came to that figure. Re hab costs etc.
That will really help people to understand I think. A lot better than I got a deal and I am going to make this much!!YEEPPPEEE! You know what I mean?

Just a thought,
Michael Mangham
MD Home Acquisitions LLC

Thanks! This will be one to talk about for a while....

It is a great feeling....can't wait to start the remodel!

B.C. wrote:

Way to go Chris!!! I will have a toast to you tonight

weeeeeeeee....yes my wife has been a great partner!

OK...good idea...I will post the details.

Wait....not closed yet...the bank had an issue with the HUD statement...and their attorney was not around to initial the changes, so it won't officially close till Monday..and they still won't let me in the house....ughhhh.

Congratulations, friend!! I know after your newest post it might be a bit premature, but I'm certain yo will close on Monday. It's probably some tiny little error.. annoying, huh? I say congratulations on not only the deal, but WOW the learning experience. I hate those kind, but they sure help you grow in knowledge, AND things getting cut so close helps one get over EVER having butterflies about stuff. LOL
Man, you are on to such great things, Chris. I LOVE how you share with all of us and are so upbeat! There's nothing that will hold you back with an attitude like that!!

Thanks again, Chris, and I wish you ALL the best on Monday and in all your future deals (you're another one to watch for at next year's EDGE, I think. )

God bless,

Rina

P.S. and Wow to Michael! Thanks for all the great posts in here!

I can credit you and the rest of the EDGE speakers for opening my eyes to the use of hard money! This certainly has been an awesome learning experience, and a profitable one too. I know it will close, just a minor adjustment to the HUD statement, but the sellers attorney has to sign off on it. My next deal is a little scary, but again, a great learning experience! Thanks again for all your encouraging words!

Rina wrote:

Congratulations, friend!! I know after your newest post it might be a bit premature, but I'm certain yo will close on Monday. It's probably some tiny little error.. annoying, huh? I say congratulations on not only the deal, but WOW the learning experience. I hate those kind, but they sure help you grow in knowledge, AND things getting cut so close helps one get over EVER having butterflies about stuff. LOL
Man, you are on to such great things, Chris. I LOVE how you share with all of us and are so upbeat! There's nothing that will hold you back with an attitude like that!!

Thanks again, Chris, and I wish you ALL the best on Monday and in all your future deals (you're another one to watch for at next year's EDGE, I think. )

God bless,

Rina

P.S. and Wow to Michael! Thanks for all the great posts in here!

OK, it's official...it's now my house!

Now off to the renovation......

That some wonderful news to hear. Injoy your new home.

time to get dirty!!!

That the "ride down" - the nose dive - only serves to propel you to new heights!

Congratulations on the tenacity and persistence to see this through!

Mike

Just awesome, Chris. Congratulations. You had the courage and tenacity to stick with it and you found solutions to problems. You didn't let them overcome you. And, you let us come along for the ride. You're an inspiration to all of us. I think Rina's got you pegged for the right place next year - center stage!!

Job well done! Keep it Up!

Tori

Sorry, haven't been on in a few days...August is a busy month!!! Two deals...plus football and my sons 13th birthday....busy busy busy.

Deal #2 officially closed on Monday, we got the keys on Tuesday, went through the property again last night to finalize our repair plans!

Deal #3 should close within the week!

You are proving that it can be done no matter how many things you have going on in your life.!!! Continued success!!

Thanks for your continued kind comments!

Your in the ring fighting yourself!

OK, you may think these rates are high, but keep in mind, I put $1,000 into this deal and the hard money lender has paid for everything else, closing cost, purchase and renovations. Without the hard money loan I wouldn't be in this deal.

Principle Amount: $100,000
Lender Points 2%: $2,000 (2-5 points is the norm)
Mortgage Broker Fee: $500 (hard money was thru a broker)
Interest Rate: 15% (norm is 10-18%)
6 month balloon - payments are interest only (with possible 6 mo extension)

My exit strategy is rehab this property then sell it, or refinance and lease to own.