First deal, slipped away.

[Jeff S.]

So I've seen a few "non-success" posts in this forum so I thought this might be a good place to share.

For about a month now I've been working on one deal - my very first deal.   A duplex to owner occupy.  It's not a homerun by BP standards, but the price was below market, the numbers worked quite well, there was plenty of upside in rents and future rents (up and coming neighborhood) and very importantly in my situation:

1) It is a very pleasant property that I would enjoy living in, in an appealing neighborhood.

2) It has stable good tenants so no newbie fear of having to fill an empty unit right away.

3) Cheap enough so I wouldn't need to FHA and I would still have reserves enough for comfort/sanity and even upgrades.

The situation was an owner with a balloon due on 12/31 and not enough credit to refi.  We have a great rapport and I didn't want to pressure her.  She kept saying if she couldn't refi she would sell to me, asking price, split closing costs.  Even after a little scare with a cash buyer she reassured me I was first in line.

She got turned down 3 times for a refi, and said she would know by Tuesday (*last* Tuesday) about the fourth and final attempt.  Still, I didn't want to pressure, so I waited, pins and needles, for a week not hearing anything.  Today I texted her and - surprise - it looks like somebody is going to lend her the money after all. Sad for me : I really was growing attached to the place.

Anyway, there's always the chance something won't work out, but it's time to start letting go.

A lot of this process has been good for me.  I got my financing options all straightened out, set aside some extra cash, built some good relations with lenders, and really took a lot of steps that involved overcoming fear/hesitation/laziness/frustration. So that much I can carry on to the next deal.

In the meantime I can keep learning, and try not to be discouraged by all the ugly overpriced boxes in shady parts of town.