Where do I go from here ???? with a rant !!!!!!!

Question

So I have a property in contract and let me tell you,,,,,, this has been the most stressful thing I have ever encountered in my life !!!!!!!! anyhow, my agent proposed this property to me purchase price $185k arv $370k with a $60k reno budget. Originally I had a lender approve me for the funds and my father was going to borrow the 40% from his annuity, well the lender decided last minuet the property was to rural, then my fathers annuity fund told him he could not borrow since he borrowed many years ago and supposedly it was written as a loan and since he assumed  it was not written as a loan it was never paid back. Clearly someone dropped the ball I don't know who. On top of all this my attorney was not at all responsive to any questions I had regarding the contract so I was forced to hand all this over to a new attorney who BTW has been phenomenal This was extension number one. Moving forward I went with another HML who was going to partner me with one of their successful borrowers whose apparently a big flipper in the area and he was going to bring the remainder of the money to the table in exchange for a 50/50 split. I spoke with this gentleman and told him I'm scheduled to close on said date, he says OK get an extension and I will see the property, this was extension number two. It was my impression he was very interested in doing the deal and I was excited to work with a flipper which in return I will receive valuable advice. Well he disappeared I assume he never saw the property, wont return any of my calls nor texts, I mean jeeze just tell me your no longer interested don't leave me hanging TIME IS MONEY !!!!!!!!. So I make the decision to give up on this guy and found another lender this is extension number three, while all of this is taking place the asset manager has been completely against me, it takes days to get any sort of response from them, they originally wanted to close in one week from contract, anytime I asked for an extension it would be for one week only, le me mind you by the time I get the extension a few days have already passed and the last extension I had to agree to $100 per day penalty, BTW I received signed contract from seller feb 22. Honestly they have been hell to work with. My attorney is at a loss of words with the way I have been treated during this deal, apparently I got the short end of the stick because another asset manager failed to sell this property, and two other deals fell through, so I got the brunt of the anger. At this point the asset manager wants a decision today weather are not I am committed to next Fridays closing date, if I am and I do not close I will forfeit my earnest deposit. Besides my earnest deposit I have other financial obligations to this deal, title search, appraisal, attorney and and enormous amount of time. I don't feel comfortable any more with moving forward as so many things have gone wrong to this point and absolutely NO ONE has been able to make a commitment. The contract is in my LLC, so im wondering if I can wholesale it at this point to recoup my lost funds and my time, maybe walk away with something. I think the hardest part about this is having to rely on other people to bring this deal together, and unfortunately I just don't think people are serious anymore. My arrangement with partnering they bring the funds to close and front the reno and I handle all the construction and sale of the property for a 50/50 split of profits, well I guess that's just not good enough for people. Any advice would be great........ Also this was my first deal I was able to get to contract, not at all a good first experience

Karen Rittenhouse · Answer

I have transactional and/or rehab funding that might have worked for you except that you have no experience - hence the situation...

Once you've done a deal or 2, funding from us would not be an issue.

But, this is no deal for a first timer. The numbers look good but, even as a contractor, you're better off doing a quick turn rehab or 2 to get all the experience you need that you can take to investors who will then work with you.

Cancel this deal and grab a beer. We've all had ones we've lost money and time on. You learned a ton and won't let this happen again! I do 60-65 deals a year and haven't worked with a bank since 2008 for many of the reasons you're describing.

Part of the reason you're working so hard on this is you just don't have enough leads. If you had other deals to work or in your pipeline, dropping this one would be far less painful.

Thanks for reaching out and sharing your story here so others can learn from the pain you paid for.

:)

Michael Gessner · Answer

Account Closed your right its a long one I was lost in the keyboard on this one lol

Account Closed · Answer

"Asset manager" made me think it is a bank/REO. They normally dont allow assignable contracts, so wholesaling probably not an option unless you can take title.  I have bought a bunch of property from banks and they don't play any games. Either you pay now or go away. Everything is on their terms.

I've had to eat the EMD and it sucks. That one was because it turned out to be infested with termites though, so it cost me less to walk.

PS:  Paragraphs, brother!  Thats a novella you got there. :)

Phil G. · Answer

The banks can be difficult to work with and I pay cash, so I don't have to worry about financing, but there's often some gotcha.  A title issue, an issue with condo or HOA association, lost paperwork.    They can extend for weeks on end, but if I need to reschedule a closing because of a toothache, you'd think I'd bring down the banking world.   But it's their way or the highway, so try not to get too frustrated or outraged.

The banks, at least all the major ones I've dealt with, will not allow you to sign, change the buyer name, etc.  If you want to wholesale, you'd need to take title and it sounds like you're running out of time to find a buyer and arrange for transactional funding.

Where do I go from here ???? with a rant !!!!!!!

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