Kinda boring

I don't really have anything new to report but felt the urge to "blog". Christmas was busy but good. The snow here has all melted, we're just waiting on the next round of snow. I'm waiting for January to roll around so we can close on the condos. I'm kicking myself that I didn't counter for the closing date to be sooner. As it sits closing is the end of January. Why didn't I ask for mid-January? That was dumb. Live and learn...

I put offers in on 4 properties early last week, 2 late last week, we're doing another 2 this week and am waiting on a HUD to go "public" next week. We'll see if anything comes of these.

That's about it... my title was right!

To pay or not to pay, that is the question

I got a call from my buyer on Friday (for the condos) b/c he wants to look at another property I have under contract. This is one of my HUD properties. While on the phone I told him we were countering their offer for them to pay closing costs. We discussed the situation and decided to split the closing costs. I decided to keep greed at bay, get a signed contract, close and move on to the next property. What is that saying? A quick nickel is better than a slow dime? Something like that? Anyway, hopefully he'll purchase the other property too and I'll be closing 2 in January. That would be a first for me! Closing 2 properties in 1 month. One day I'll be closing 2 properties in 1 week OR 1 day. Baby steps...

We have another 3 - 5" of snow coming tomorrow. I just love Wisconsin!

Written Offer

We got an offer on the condos from the guys that bought our first set of condos - Yah! We only have one sticking point right now. When I sent out the email 2 nights ago I stated the buyer would be paying closing costs (I paid at the last closing). I did this b/c I paid more for these condos and I know I'm giving a great deal. Anyway, these 2 guys jumped and wrote the offer w/in 24 hrs however they are asking me to pay closing costs. I'm trying not to get too greedy but if they want the properties they should pay closing costs, right? I hate to lose the sale but, really, I'm giving these away. AND, the dingbat of a realtor told MY realtor that if/when I buy the rest of the units in the complex he wants to buy them from me. Cool. This makes me think they will pay closing costs too.

Anyway, there are 2 other pair of condos bank owned (Wachovia & HSBC). Neither is listed yet so I'm in the process of trying to get to the right people at the bank. I can't STAND waiting on hold and am sooo glad I do not do short sales any more. Maaan, that was just not a good fit for me. Anyhoo I need to get back on the horn and see if I can reach the right people at the bank. If anyone reading this good contacts for me please let me know.

Oh yeah, I had to stay home from work today b/c we got a foot of snow and it's expected we'll get another 3-5" tomorrow. We have to drive to IL tomorrow for a Christmas party, should be loads of fun!

Have not heard back on the property where the bank wanted to "negotiate". I know ALL banks want to negotiate but it's just so funny having the listing agent actually verbalize it. Maybe he gets a lot of people walking away from the first counter?

I caved in... Again!

So the whole time I was negotiating on the 2nd set of condos I was planning on holding/renting/L/O/etc. Point being I was going to hold them. Now that we've closed and I just think about holding I get sick to my stomach - ha, ha. No, not that bad but I do become a nervous wreck. I know I feel this way because it is unchartered territory, fear of the unknown, yada, yada, yada. So on my drive home from work last night, which has been up to 2 hours EACH WAY this week b/c of the snow, I told myself I was going to send an email to my buyers list and I did. Immediately I got an email and a VM from someone saying he was interested. I also had another email this morning from the same guy who bought the first set of condos giving me a "tentative offer" but that he needed to talk to his partner (the dingbat of a realtor I spoke about in previous blogs). I would be making waaay less money this way BUT it would still be a good payday and I wouldn't be holding on to the properties for an extended period of time.

When I asked my realtor if she could meet them this weekend she said sure, no problem. She also mentioned that she was going to be there for 1 appt on Sat. and 3 appts on Sunday. We'll see how it all pans out. Wouldn't it be a Christmas miracle to sell to qualified retail buyers?! I'm not counting on it but it would be a great present, that's for sure. Not THAT would be a great payday!

I put an offer on a property for $42k and has a list price of $89k. The bank came back at $86k but, here's the kicker, the listing agent told my agent to not let this discourage me. He told her I should counter again, the bank was ready to negotiate. I'm not sure I'll get the house for $45k (which is what I came up to) but I thought it was funny.

I've been watching a couple more HUD properties and some other REO's. Again, haven't been making many offers b/c of what I have in the pipeline but will be sending them out with a vengence if I get these condos under contract!

Portfolio Loan

I asked my mortgage gal if I can hold a 2nd mortgage on the condos if someone wanted to purchase and she said yes, they would do a portfolio loan. Esentially she doesn't care where the 20% downpayment comes from as long as they are only funding 80% of the loan. That's cool, now I just need to find me some buyers.... ha, ha. Just writing out that last sentence made me laugh.

More condo saga

Our closing on Friday went off without a hitch... weell, not quite but almost. At the last minute we were able to schedule the closing for the 2nd set of condos on the same day. There was some running around that needed to be done but whoever needed to "get it done"... got it done. With that said I didn't see the HUD statement for the 2nd closing until about 1pm on Friday. It showed my downpayment as being 28% of purchase price and the email stated I needed to bring over $4k in certified funds to closing. WTF? No, uh uh. I called my mortgage gal and we got it straightened out. She was questioning it too when I called.

But before all that went down I got an email from the newspaper I was going to place my ad to sell/lease option these things. She told me my ad didn't get in the paper b/c my credit card was declined. What? I had just used my debit card and I had plenty of money in it. Not only that but even if I didn't have any money my bank "fronts" me the money for a fee. So why the hell is it getting declined? I called her to be sure she had the right number. She took the number again and said it would be run that night (by corporate) and she would let me know today. She called me this morning and told me it was declined again. WTF? I used it ALL weekend for Christmas shopping and had no problem! We have to get this figured out before Thursday at 9am or it doesn't get in the paper again. We need to be advertising these things like crazy!

However, it is listed on the mls. I signed a listing agreement with my agent on Friday. She told me then that her broker might have an interested party. We'll see what comes of it. I'm sure nothing b/c he hasn't even gone through the properties yet but she has been telling me about him for 2 weeks : ) Anyway, originally I was planning on holding these but now that they are mine I'm nervous. I'm not sure I'm cut out to be a landlord?!?! We'll see how that goes if it comes down to it. Our price is $119k each with the next condo priced at $169,500. Since any buyer would need 20% down (b/c of the non-warrantability "thing") I am thinking I will offer a 6% credit (I think that's the max FHA will accept), make sure the buyer can put down 4% themselves and then carry a note for the remaining balance. If I do this we should still make a pretty penny on each unit. However, I need to confirm that my lender will accept a seller backed note for 10% of the downpayment. I have a call in to her but she hasn't called me back yet. I'm trying to come up with any ideas on how to get the buyer to a 20% downpayment. Any and all suggestions taken.

Now that I've rambled on I am going to run... everyone have a good night!
I feel like I've been rambling on so I am going to run. Nothing else is happening. I've backed off on submitting offers b/c I have the other 2 in the pipeline and not sure I will be able to get rid of them quickly.

If it's not one thing, it's another

The listing agent that was such an ass earlier in the week has cooled his jets. My realtor told me he was much more mellow the next day. He must have found the error in his ways OR my realtor is not telling me the whole truth about his rudeness. Either way I'm content. I don't want to burn bridges with anyone. I may do a GREAT deal with this guy in the future - who knows?!?

We're all set to close on the condos next Friday. I have an ugly feeling that there is going to be some kind of snag but nothing has come up so far. This is the first time I'm closing with these investors and I was told "he doesn't back out of deals". Famous last words, right? There are 2 investors on the contract and one is a realtor. I've been working mainly with the realtor who is a complete dingdong. He's the one making me nervous. The other guy is super laid back and I get a confident vibe from him. The realtor on the other hand... I ofter question how he can run a successful business?! I'll keep everyone posted.

What else? Well, I am a nervous wreck having 4 properties under contract! I keep thinking of all the bad things that can happen, listening to the "doom and gloom" on the tv/radio, even the flippinghomes forum has had a few comments. The comments have not been "doom and gloom" but just to be more cautious, which I try to be on all purchases. Anyway, I'm questioning my purchase price, where they are located (one is on a busy street), the level on the others driveway (it's long and steep and we've had a lot of snow), etc... The selling prices will be $30k - $40k below comparable properties and 1 needs zero work. Maybe paint and carpet but definatlely not necessary. The other needs very little work but I'm still nervous. Also, they are HUD properties so I can not show them until after we close. At least I have not found a way to show them before we close. They padlock the doors by me and I would need to get the key from a realtor every time I showed it.

On to the title, "If it's not one thing, it's another"... my husbands car died. The engine seized. Right when I think I'm going to get that damn credit card paid off we need to put the money somewhere else. I hate cars! Urgh... I know the credit cards will get paid off eventually but I NEED to get my debt to income ratio down, especially in this market.

On to something fun.. me and my girls are going downtown Chicago this weekend with my family to see the Christmas windows, see Santa and go ice skating (and maybe have a couple drinks : ) . Looking forward to it!!

Have a good weekend all!

Heeeell No

So I went through the questionable property on Thanksgiving and thought "heeell no" walking through. I don't know what my husband was thinking when he said it was okay?! Last time I send him to go look at a house! ha, ha. I told my realtor we had our contractor out to look and could do no more than $25k. I sent this message on Friday and got this email from her today:

"As far as Lakeshore is concerned, it is getting a little sticky. It is already in their system as an accepted offer due to the first paragraph of the addendum talking about verbal agreement. It is not binding until you sign the addendum but the agent is getting a little edgy and may try to make you stick with the offer. Let me know what you think."

Here is my response:

"That agent can kiss my ass and take me to court. I had an inspection contingecy. The inspection did not go well - end of story. How can he make me "stick to the offer" with a contingency in place? What is the point of contingencies if an agent is going to "force" someone to buy anyway? This really ticks me off. How concerned should I be with this guy?"

Am I wrong here? I have lowered offers/upped offers/backed out because of what my contractor has said. What are contingencies for? Oh well, they never got a check from me so I will not lose my EMD but I may go to court?! I doubt the bank will want to shell out that kind of money for a property being off the market for 4 days.

Urrgh.. off that subject. Yesterday we had 2 HUD properties accepted. They are good prices but they accepted off the bat. I should have offered lower. I hate that feeling. So now we have 4 properties under contract and am getting a little nervous. I guess it's a good nervous but I hope like hell we can move these.

I'll keep ya posted.