Costly Newbie Mistake - Altamonte Condo

[Kevin Allen]

I thought I had all my ducks in a row...

Just this past week I found a great rental property through a local wholesaler. The numbers worked (positive cash flow), I inspected the property and was working with a mortgage broker. Everything was lining up perfectly.

This was to be my first investment property and I was being very careful to make sure I didn't put it under contract until I had worked everything out.

So last Friday, I confirmed my financing was ready. I got the verbal "go-ahead" from my broker. Despite the fact it was verbal, I felt confident in going forward with the contract since this was a very inexpensive proposition.

Previously, I had sent my broker the details about the purchase - (No financing contingency, as-is, no inspection period, etc.). That email must not have been read; Today I was informed that the broker cannot originate any loan with these conditions.

So an expensive lesson learned for me is to know this simple fact, make sure you are very specific with any lender about the terms. Then, when you think they understand, verify. And make sure the verification of understanding is in writing.

I'm sure all you seasoned investors out there have already established relationships with lenders and don't run into this type of mis-understanding. For those just starting out, I hope this is helpful to you!

Kevin

The deal isn't dead just yet, but it looks like I'll lose my deposit come Friday.