My First Deal is My Own Family Home!

to ask friends & family for some "small loans" cause if you get a few small loans from each you will have your $10k!

I am looking into doing that too, but nobody seems to sense the urgency in this like I do. They'll think about it, or an outright "forget it" from my immediate family. Meaning my mother. I may ask my father to take out a small personal loan for the amount but do not wish to cause problems since my mother basically told me not to ask him. He has the better credit score but is on a fixed income. I obviously wouldn't screw up anything by not paying, but this is the only family I have and do not want issues because I asked him. Mom can be a bit funny sometimes...

Have some calls in to a friend with some money in the bank, and I even received a few responses from some great folks on the site, but nothing has become solid yet and the quest continues.

Thanks!

Kristin
(future homeowner!)

Keep on trying, everything will work out!

I signed the P&S Saturday and the offer was given to Chase Bank Monday. They cashed my deposit check and then I have heard nothing...Called the agent and he hasn't heard anything either. Is this normal???

Still trying to raise the funds to close this first deal and not getting very far. I do have a check coming in today for about $3000 (minus some fees) from my 401k but that is all I could get my hands on.

My friend cannot loan anything and no one else I know has any available funds to loan out. Plan on speaking with my father today about a small personal loan that I will make payments on and then completely pay off when I refi.

Very frustrating to get stuck like this so close and for not a lot of money. Still have the wheels turning but right now they are just burning rubber...

Kristin

P.S. Does anyone know how to put a picture on here?

My agent Oscar called me and stated there is another P&S I need to sign, obviously created by the bank to lean in their favor. I need to print it out and read carefully to make sure I understand everything before visiting the agent to sign tomorrow.

They are requesting more earnest money down. I already put down $1k and they want an additional $2k. Still requesting a closing date of 6/28 but this may get extended due to inspections and other things.

I am scared that I will wait too long and not be able to close and then lose my earnest money deposit, or not be able to locate a buyer willing to take it off my hands for a bit more than I am locked in to pay. I must decide by tomorrow since they are expecting the form be completed by tomorrow. I do not wish to advertise for a buyer until that final P&S is signed. I may be over my head but taking it one step at a time and learning so much in the process.

Kristin

Ask your broker if you can take a piggy back loan( 2nd mortgage for the 10k or more for fix up to cover you.
Then refi and make it one mortgage.

best of luck
Richie

Because they are wanting such a quick closing, it is a cash deal and he is putting it through a HML. They are the one that is requiring the $10k to get me into the hard money loan to close the deal. Then the lender is going to get me refinanced for better terms, and thennnnn after 6 months of seasoning, refi and pull some cash out. But when I finally get hold of the lender tomorrow, I will ask him if this is at all possible and to outline each and every scenario available to us... Thanks!

Kristin

I cant give advice since I havent done any deals yet. Just wanted to say that by stepping out and trying you are very brave. I know you will succeed. If not on this deal, then on another. It is very easy to get caught up in a deal when you are so anxious to give your family a home and you feel like you have found the perfect one. Just remember to always give yourself a way out of a deal by adding one or two escape clauses in your contract( as Dean suggests ) There is always another "perfect" home around the corner. Best of Luck.

Hi,

You may want to try reaching out to one of your local "We Buy Houses" investors or your local REIA ...they usually have access to private money investors that would be willing to give you a short term loan with a high rate of return. You may also want to look into peer-to-peer lending...try prosper.com, peer-lend.com, and virginmoney.com. I've never used any of these sites myself, but thought I'd offer them as a resource. Do a google search to find out more info and perhaps loacate other resources.

Good luck!

Tried hitting up the credit union for a personal loan today, but that did not go too smoothly. Credit score not high enough, too many obligations, not rich enough...you get the idea.

Spoke one last time with my father and asked him to cosign a loan, but he is thinking about it. I didn't want to rush him, but I probably have until tomorrow morning at the latest to agree to the deal or walk away. If he cannot decide, or my mother will not let him out of the house, then I will let the deal go and get the return of my $1000 earnest money. He was willing, but my mother handles the finances and is not pleased with the idea. Go figure. (I always was Dad's favorite anyway and hope that plays to my advantage.)

Such a stressful situation and I felt like a jerk contacting the agent and stalling for a few more hours. I want this locked up or thrown away even more than he does. He may be making a commission, but I want a home and a way to tap into instant equity for more deals. Ahhhhh!!!!

Ok, feel better, sort of. Will keep posted.

Kristin

No one can ever call you a quitter! Like they always say, where there's a will there's a way.

After all of my attempts, and anyone following this deal knows I have tried just about everything, I cannot get the money to put down for the deposit. I am very disappointed in not being able to get the deal done, but I have to be realistic and let it go now.

I will send one last ditch effort to see if the lender can put together some sort of deal without any large deposit, but don't think I can get this done by the time I need to contact the agent in the morning. Ugh!

My parents decided they couldn't co-sign a loan for the $10k and that's fine, it is their choice. My father actually thought I would be mad, but this is business, not a family issue. Think next time I will make sure not to involve them in any way, shape, or form in any of my deals.

This failure to complete the deal has only spurred me on to find other deals, which I will do tomorrow. They are out there and can't hide from me.

Anyone looking for a 4 bed/1 bath house in Lincoln?

Kristin

you could have asked the R.E agent to put up his commission to make the deal go through and then after the closing, etc - pay the agent back with interest. Some agents will put up their commission to make the deal work.

His share of the commission would only be about $3000, but I will definitely keep it in mind for next time. Thanks!

Kristin

you will do better next time I'm sure...and maybe get an even better deal! No need to cry over spilt milk, just keep looking for the "right" house. I have the same issues with parents...some years ago, when everyone was fleeing the country where I live, and my husband and I had just graduated University, there was a beautiful beachfront deal- two 3-bedroom houses with shared swimming pool in an exclusive tourist area going as a package deal for what would be approx 50KUS. We wanted to buy the houses but had only just started working. We had only the deposit. BOTH SETS of parents refused to assit us in getting the mortgage, which would have been paid off already....now, they say 'if only we knew" because those same houses are now selling for 750K each!

We did however sell our car rims to get the REST of the deposit on a small town house apt which we purchased then for 25K and which we sold 10 yrs later for 80K. So start saving toward a bigger deposit, and check out some of the first time homeowner programs that help with funding...then do it on your own. Good Luck!

Check the following sites to see if you can get help here.
http://www.ahaanow.org/HomeOwnerResources/DPA/

Good for you in making such a great deal on the townhouse. And let the parents kick themselves for not believing in you enough to help with the deposit. They'd be sitting on some nice cash right now!!!

Thanks for sharing your story and the tip about saving. Will do that immediately.

Kristin

Sorry to hear that it just didn't work out. You'll do better on the next deal, I just know it. You're focused and determined, and you're not afraid to reach out and take chances. I know you can do it!!

It still isn't completely dead if the bank holding the REO will agree to a financed deal. If they don't then they can put it back on the market and send me my $1000. And I will resubmit another offer at the end of the week and each week until it is sold to someone else or they break down just to get rid of me!

Kristin

I was completely shocked when the agent called me to say that the bank is willing to consider the deal still on if I could get them a pre-approval letter, complete the deal on or before July 31, and come up with $2000 more in earnest money. I have the $2000, contacted the mortgage lender to send the letter to the agent by fax and email, and now must wait again...

Then I get an email saying the agent didn't get the fax or the email and I can't reach the lender until tomorrow morning. Ugh!

I hate not being able to do anything and the chance of losing the deal because some piece of paper didn't get sent over in time. I will do everything I can to make sure it was sent first thing tomorrow and get a copy for myself.

Kristin

I will follow that my friend its time to swore

Last minute reprieve? I hope this works for you...patience!

how did it go?