I've been meaning to post for the past week, a lot has happened!
First, we had a buyer submit a contract for one of our condos at $92k (we're into each for $74k)! Woo hoo! He has 20% downpayment (mandatory), an 810 credit score and very good repore with one of the local banks. He went to them for a loan and they were doing some weird balloon loan because I owned both units. What that had to do with anything is beyond me?!? Then they started going all crazy b/c there is no association formed. Mind you, the buyer is aware of this and was quite okay with the situation. At any rate, the bank insisted he talk to a lawyer prior to approving him for a loan. Once I heard a lawyer was getting involved I knew the whole thing was going to shit. And, that's what happened. I don't really know exactly what happened, if it was the lawyer, the lender or the buyer that actually caused the problem? I struggle with my lack of "control" over selling properties. I have my realtor list most of them for 2 reasons. One, I do not think I can buy/sell more than 4 in one year w/o being licensed. Two, I just don't have the freakin' time to show the properties/follow up with buyers. Anyway, I should have told her to insist all interested buyers go through MY local bank. They do not have issue with no association. Of course I told her now that it is mandatory for all buyers to go through my bank. Too little, too late. Urgh... live and learn.
Second, we got a contract on our Twin Lake property for $81.5k (we're into it for about $69.5k). This is the one where I thought there may be more work than I thought. Anyway, this is an investor and he is closing with cash. So as of right now we have 2 closings (with buyers) in March. It should have been THREE closings. I'm just bitter.
Third, we may be getting another property under contract. This one is listed for $100k, I offered $30k and they countered at $50.6k. Ha, ha. This is another HUD property. We're going to take a peak today. Depending on how it looks I may wait for another price decrease since there hasn't been one since October.
Fourth, we have another set of condos closing on March 13th. I have seriously considered backing out of this and losing my EMD. One of my problems is that I do not have a 20% downpayment for these properties. All my money is tied up in the other properties. Once we close the other 2 properties (3/16 & 3/31) we should have money but then ALL my money will be tied up... again. I called my lender today to talk to her about the situation. I just wish she would let me get into these properties with no downpayment. OR, 10% down would be better. I'm going to call another bank this week and see if they can do anything better for me. This bank has been great and I would still use them but having my money tied up like this puts HUGE limits on what I can do.
So, I gotta run.......
2 comments:
I've been thinking about you! Sounds like things are moving for you. I don't know why there is such a concern about the lack of an association...is it because they want to know how much the association fees are going to cost to determine whether the buyer can afford both the mortgage payment as well as the association fees?
I'm not sure why lack of an association is such a concern? This guys bank thought an association would be formed and there will be a huge assessment due. WTF? These properties are 4 years old! What big assessment could be charged for 4 year old properties? I'm really struggling with closing on the next set of condos or not... I keep going back and forth. I never have backed out of a contract and do not want to start now. But I don't want to be a landlord either. I'll have to make my decision soon!
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