All Forum Posts by: Jimmy Hong

Hello everyone,

My listed property was in contract on May 2014, received deposit, and buyer had until June 30 to close. At end of June, my agent finds out buyers lender, Wells Fargo, is requiring 2 appraisal because this property is rehabbed. The 1st appraisal comes in at the listing price but the 2nd appraisal comes in much lower, and Wells Fargo rejects the loan. The buyer is devastated and informs my agent she really wants the property. She requests additional time and will find another lender. I agree and buyer continues loan process with another lender, and hears back from Wells Fargo that they may approve the loan. In early August, Wells Fargo approves the loan and need one more doc signed by buyer. Closing papers were scheduled to be signed by buyer last Friday and funds were scheduled to be transferred on Monday.

My agent finds out the buyer did not sign the closing docs, and instead, finds another agent and puts in an offer to another property, in the same complex as mine. My agent calls the buyer's agents we've been working with and inform him the news. Buyer's original agent had no clue that the buyer hired another agent and was understandably upset.

The buyer agreed to go back to the original agent, and we gave buyer until Tuesday to make a decision. Buyer was supposed to call him last night but haven't heard from him as of today.

The other property that was listed to mine is without any upgrades, no rehab work, original cabinets, etc. My property has new laminate floors including all the bedrooms, total rehab of kitchen, new kitchen cabinets, rehabbed bathrooms, removed popcorn ceiling, etc for $18,000 more. The buyer's agent couldn't believe she wanted the other property over mine for $18k less.

We are re-listing the property back out on the market and moving forward. Just wished we weren't dragged on for 3 months.

Just curious, the standard insurance cover that or do you have purchase "tornado" insurance policy?

How can you get out this soon after being convicted of double murders? That's the question that keeps popping up in my thoughts.

Hey @Matthew Yrungaray , do you think you can post some actual numbers so we all can evaluate it better for you?

I have to agree, 70% rule does not apply here. When I was at the court house steps, there was no way I would have been able to purchase any properties using 70% rule. I had to adapt and pay more knowing that neighborhood and city would sustain the higher price. And lets not stop there, 2% rule doesn't apply here, 50% rule doesn't apply here (actually not sure about 50% but you get the point), basically any rule that works in mid-America doesn't apply in California.

For me, as long as there is some equity (like 25%), I would reinvest the cash flow to other properties. Its not like you are leveraging to the max with zero equity. You still need to put down payment and you are paying off the loan on monthly basis. I'm not talking about spending every additional funds on the next high risk property, you should still have enough in your reserves to cover vacancies, repairs, maintenance, etc, and however more for your piece of mind. But after that, reinvest. Why not use your additional capital and keep making it work for you?

Couldn't agree with you more @Sharon Tzib .

My thought is appreciation being a factor, also coastal cities have higher cost of living, and home prices being one of the them.

Hi guys and gals,

Just an interesting read I ran into. Thought I share...

http://www.marketwatch.com/story/should-you-pay-off-your-mortgage-2013-08-14?link=MW_popular

Congrats Dawn, keep up the great job.