All Forum Posts by: Coire Fox

Greetings BiggerPockets community!

I have what I believe to be a rather strange situation on my hands. I am in the process of purchasing a primary residence for myself and my significant other. We are doing a 203k streamlined renovation loan. This is the second 203k loan I will have done and I thought it was going to go a lot smoother than the first which was a full 203k (about 75k in repairs).

Anyway, the problem is this: We are supposed to close tomorrow and the financing is not ready yet due to the construction side of the loan being backed up. The seller doesn't want to give us an extension to close the loan. Her initial rider on any extension was that she wanted to keep her appliances. This sounded odd to me as I have met her a few times during inspections and such. I had to go over to the house anyway to do a lead based paint test for the construction department, so I asked her, "Is doing this test even going to matter? Are we going to extend this thing?"

This is where she started to really lay it all on me. She needs cash by Friday. Now, I know you are probably thinking--How does not extending the purchase agreement get her money by Friday? She wants to be free of the purchase agreement so she can start hawking her appliances and other odds and ends. She claims she has already exhausted all her options for personal loans. She has taken out a few payday loans to make some repairs on the house that I asked her to make as a condition of the sale. OK...so now that I know what she needs I am in solution mode. I hate the idea of me giving her a personal loan. There is no other way to get the deal done and not have me out of pocket any more money (assuming I can get my personal loan back).

My question is: is it possible for the buyer to make a personal loan to the seller to be paid out of the seller's funds at closing? She already said she would accept and extension agreement that included her paying me $2500 in closing costs. But what happens if the loan doesn't close for whatever reason?

Should I just let this one go? I like the house and the neighborhood. There is nothing out there like the house today, but that doesn't mean there won't be tomorrow. And I know they are sunk costs, but of course all the time and money I already have wrapped up in the place.

Thanks in advance for any advice!

This property wouldn't happen to be located on Lowell Ave, would it? I looked at one that has almost the exact same issues as you are describing...

What expenses did you factor into your cashflow calculation? Taxes, maintainance, etc...

If you are confident in your ability to maintain the property, I would take the cash for sure. How much does the refi cost you?

$9800 is 49 months worth of rental income. Can you get a better return on your $9800 in the next 49 months?

Thanks for the shout out, Blake. I do have an Indy word alert :) I will be listening in!

Thanks everyone for all the feedback and the warm welcome!

Sugar momma really would like to be in Irvington or Fountain Square, but we are open to any good deal that might come up. Broad Ripple or Butler area wouldn't be bad either. Some place that would support duplex style living after we are done with the place and ready to move on.

Hello, BiggerPockets! I'm Coire from Indianapolis, IN. I have decided to quit my job and change careers! I don't know if I will switch to REI, but I am here to watch and learn about the industry to see if it is a good fit for me. I have informed by boss already and my exit timeline is approx 3-6 months.

My first introduction to real estate was the purchase of my first home a little over 3 years ago. I purchased a HUD home which was in need of renovation. I applied for and received a 203k loan to complete the project by the skin of my teeth. I went 10k over budget and got it "done" on the last day possible. After that I swore I would never get involved in real estate again. Of course, I thought I would be working the same job for the rest of my life, too!

The problem was I actually enjoyed it...or I am so far removed from it that I don't remember the agony and turmoil that can be a home renovation. I think I would like to get involved in another (if not many more) property. My first goal is to sell my house. I would like to purchase and move into a duplex or multi so I can at least cover my rent and possibly utilities while figuring out what to do with the rest of my life. After selling my house, I should have enough money for a down payment on something livable and enough to start investing and/or renovating something. I am lucky to have a "sugar momma" to help me through this process. She has been extremely encouraging and can support our basic needs with her income. She says its my turn :)

Advise is welcome, but not necessary. There are enough articles and forum posts out there to keep me busy for a while.