All Forum Posts by: Chinmay J.

@Russell Brazil  - You are a great asset to this community, and I am glad you are part of the DMV and not some other geographic area 4000 some miles away.  Hoping to meet you someday in person at one of the REIAs. 

Congrats on 5K.

Thanks for your insight...

I understand the typical short sale when a loan is involved, but since this is a cash sale, I thought that the bank approval would be much quicker in this case. So based on your explanation, I see that the offer has not even been presented to the bank.  Here is a follow up question. Isn't the clock ticking for  them. If they don't get it under contract, wouldn't they go in foreclosure? Its a lose-lose situation right? Bank loses and Seller loses. 

To your second point. I am not the listing agent. I am the buyer and acting as selling (buyer's agent).

I recently made an all cash offer (with the help of HML) no contingencies except Short Sale Contingency, and Well and Septic contingency for a house that was listed at $129,000. My offer was $90,000. I got a counter offer for $100,000. I plan to counter that as well with something around $95,000. The ARV will be around $160,000 with repairs of about $30,000 and holding costs of about $8,000

However, the seller pushed back the dates from next two weeks of closing to first week of May and Bank approval of second week of April. I understand that the bank is trying to get the best possible price for the house and is trying to buy some time. So with this background information, I have a two fold question:

• What is the likelihood that seller is acting on his own and bank is completely in dark about this, or is the bank dictating what the dates should be on the contract, and seller is just obliging?  (This question is so I know how to present myself. I never had to deal with Short Sales from the listing side)
• What would you investors do in this case. Would you be OK waiting a couple of months for deal that seems to be pretty good, if I do end up getting bank approval?

This will be my first flip. So far I have been buy and hold investor and time was never of essence to me. I was willing to wait.  I have my eyes set on the goal of 2 flips for 2017.

 You can post the numbers right on this thread. 

@Russ Trimboli - I had asked this just a while ago. This was an interesting discussion and was very educational for me. Check it out. 

Offers w/ Expiration Date

@Manuel Rosa - Congrats Manuel. Pics and numbers look great. Just a couple of questions...

How did you fund it? Did you pay cash yourself or went to HML. Also how long did the process take with the bank with it being and REO. Did you pay the listing price or negotiated it down to make your numbers work.

 That is unusual and could be the reason why its not getting sold. 

 Is that two detached houses on one property under same deed or its a duplex?

 Its not that nobody wants 'em, but it could be stay listed for prolonged period of time because its sometimes difficult to consummate the sale. 

A lot of times they all think their dumpster is a Taj Mahal. Usually its somewhere in the middle. Sometimes it takes them days and days of being on the market for the sellers to come back to planet Earth in terms of realistic price for the house. Sometimes even then they don't want to budge. Think of it this way. If the house is free and clear, and seller is not living there, the seller may have very low motivation to sell. A few months makes no difference to him. There is no imminent threat like foreclosure.  Just last week I was looking at 100 yr old house listed at $129K. I was only going to offer $50K given that it had some serious foundation issues. The house has been on the market for 6 months, and I won't be surprised if it stays on market for another 6 months. 

Sometimes everything is going fine and something bad happens before the closing like the buyer loses his job, and can no longer qualify for financing.  Sometimes there are title issues with the property and that delays the closing. If it gets past the closing date, the whole contract can get voided. 

So you don't worry about all that. DOM is just one metric. Its not the be-all end-all. Go and make offer if the numbers work out for you.

@Joe F. House could sit on the market for lot of reasons. Without you telling us more about the property we can't say why its sitting there for over 60 days.  Some things to consider

• In the given price range in the given county/town what is the average time of closing? A realtor can look that up for you? Market is hot in summer and not so hot in Winter so it could be a seasonal thing. 
• Is this a Turnkey property or is being sold as CASH ONLY (mainly because no bank will finance it)? 
• The property has to be priced correctly.  If its turnkey property, pricing is a little easier assuming comps are available. If its a CASH only property a lot depends on who the investor is, and what his plan with the property is going to be.

Lastly, yes, the listing agent could have told you just to get you to put in the offer. Why does it matter? If the numbers work for you, go ahead and put in the offer. Don't worry about the things you don't know or can't control. The listing agent will never tell you 100% truth, as his fiduciary duty is with the seller and not you. Hope you are not considering DUAL AGENCY (Its legal in VA. Not sure about your state). Get your own realtor.