Learn to get creatvie w/financing...look how i saved my deal

[Kevin Fontleroy]

I know a lot of you guys are like me and learning as you go/grow.  Because of that i want to share how i save a deal that was almost a disaster.

I rehabbed home that took 3 weeks longer than the 4week time line and was over budget 6k on the 12.5k budget (yep my contract under bid just to get the deal...why do i feel like this isn't the first time this has happened).  The home came out great by the far the best on the block.  All the neighbors were stopping by asking to rent.  Fast forward, we get a tenant placed and went looking for an investor to sell it to.  Found an out of town investor on day 2...YAY.

Super excited to have the home under contract and ready to get the deal done.  We knew the appraisal would be a piece of cake.  I sold a home in the same neighbor 2 months ago similar stay for 89k.  Surely i can get the 55k I'm asking for.  I got the amount but the appraiser was not the brightest (he said the home hadn't been updated in at least 15 years, good thing i had 40+ pics to prove him wrong)

My seller was using a bank that rhymes with Pells Largo and in my opinion they sucked!  They had a flip criteria that was almost impossible to meet.  I asked the rep at Pells Largo for clarity and he told me "sorry Kevin, i can't coach you on how to get this deal done"...wow, got it!  Anyway, after several emails between all parties i realize this deal isn't going to close.  I get sad and prepare to throw in the towel.

This is when using other people experience kicks in.  My agent (that had no skin in the game on this deal) calls me to ask how the transaction is going.  I tell her its falling apart and ask her to get ready to list it.  She recommends that i go back to the buyer and offer seller financing since i own the home out right...Genius!  I offer the buyer the same terms as Pells Largo for 12 months w/ 6 month option to extend if needed for refi.  Seller accepts and we have a Win-Win.  Sure i didn't get the full amount upfront but 11k in the pocket and a little residual income for a year is a lot better than nothing!

Moral of the story:

• Take lots of pics of your before and after work
• Lean on more experience people to help when things get sticky

Staying working friends...my next post will be about using Hard Money...yep 13% interest here i come!