My partners and I have been searching for handyman specials since late August. After looking at about 40 or 50 properties we ran into a junker that was a bank REO. The property had been on the market for two months when we found it. The price of the property was reduced from $44,900 to $38,900.
We looked at the property and did the analysis–comps and estimated repairs–and we made an offer for the asking price. Two weeks later, our offer was accepted! HURRAH!
Everything went smoothly EXCEPT for our mortgage company. Word of advice–get to know your mortgage reps. and don’t assume they are handling everything. Call them almost every other day to find out the status on your loan.
We ALMOST lost our deal because of these clowns. Could you believe that we paid for appraisals, inspections, application fees, and to lose this property because carelessness from a mortgage rep? (HECK NO!)
Long story short, the offer was accepted in Oct. 11, 2002, but we didn’t close until Dec. 31, 2002 because of their incompetence. We almost lost the deal three or four times. (You can only ask for so many extensions.)
Well any way here is how the numbers came out:
Purchased at $38,900
Appraised value $85,000
Repairs $15,000
What we put in:
$500 inspection
$350 appraisal
$350 home insurance
$350 application fee
$700 lawyer fee
$500 survey
$125 title search
$3800 down payment (5%)
Our profit was $24,550. Talk about starting the new year with a BANG!
We learned a lot from this experience, and I could only speak for myself but, I love this game. You have to love it to make it in this business. PERSISTENCE OVERCOMES RESISTANCE. It really only takes one deal. Once you get your first one done, it’s the best feeling–confidence. Thank you CRE Online and every member on the Main Newsgroup. I definitely will share and give back to this board.