All Forum Posts by: Corinne Ulloa

 I agree, and in that regard we feel a mix of stupidity and the feeling of being robbed. This is a lesson learned, I just hope that it's not too hard of a lesson learned.

 Hello @Tom Gimer,

I have a text message exchange between her and I that states we'd like to counter at 235k after the second buyer came in. Then again after he [Seller] countered with the 10k in EMD knowing that we didn't have an inspection contingency, I have a text that document me telling her that we'd feel comfortable where we are (235k with 5k concessions) and that we do not agree with 10k in EMD unless we can add back in the inspection, he didn't agree, so we waived him on. She alleges that I must have agreed to 239k with 10k via a phone call because she doesn't make mistakes.

I took at look at the contract and it basically states that not sending the EMD will allow the seller to void the contract.

Thanks for your time and advice! Depending upon which route we decide to go, I will make plans to speak with the broker.

Apologies in advance for being so long winded. We are hoping that someone can advise us of the worst case scenario if we decide not to move forward, amongst a couple of other questions along the way.

Here's the deal...Mistake 1) The husband and I signed a ratified contract without reading what we signed, we just hit "next" each time prompted in Docusign. Mistake 2) We put full trust into our agent getting it right and having our best interest at mind.

The property, located in the rural part of Virginia on the Shenandoah River, was listed at 225k. We were interested in it's potential as an STR because of it's proximity to the river and to our home to enable us to self manage. We consulted with our agent and she encouraged a full price offer, and since we wanted some cash kicked back to us, we initially offered 230k with 5k in concessions, at the advice of my agent (since accordingto her, every contract she'd written in the last 4 years had no contingencies) it was not contingent upon inspection, financing or (later after I actually read what I'd signed), appraisal.

We quickly found ourselves in competition with another buyer (and supposedly a third) and we're countered by the seller at 239k. To which we countered at 235k with 5k in concessions. The seller agreed, but wanted 10k in EMD (we were originally at 3k). I let my agent know that we'd only feel comfortable with that is we could add back in the inspection contingency. She replied that it would be a change to the contract and that we couldn't do that. Not having an inspection with 10k on the line was a deal breaker for us so we waived the seller to move on to the next buyer.

The following morning, I received a text that the other buyer got "cold feet" and backed out. I let my agent know that we may have interest again if they'd allow for a contingency for inspection. She stated that the seller wasn't agreeing to that so our only option was to "sneak an inspection" and she supplied us with her inspector, so we agreed. The Inspection went OK and after a day to think on it, we decided to go back in where we left off (235k with 5k in concessions, 10k EMD). Call to agents and all other knowledgeable professionals: Just curious, would it not have been contractually possible or just in bad taste to have reduced our offer at this time?

The seller came back and accepted our offer. Fast forward to today, as I am scrutinizing my loan disclosure, I thought that I had caught a mistake because it said 239k with 5k in seller concessions. This prompted me to go back to check our ratified contract, which also said 239k, so I immediately called my agent. When I asked her why the contract would say 239k, she said that it was because it's what we agreed to. To which I replied, "No I did not, EVER"! She refused to admit guilt and it was feeling an awful lot like gaslighting. Her defense was that she'd done 50+ contracts this year and she has never made a mistake. It wasn't until our second call (5-10 mins after the first) that she gave a weak apology and she conceded that raising our offer from 235k to 239k would have been a bone-head and nonsensical move when we were the only buyer with interest at the time and struggling to accept his terms of 10k in EMD. Why would we agree to that?

I am feeling like this is a sign from the universe not to move forward. It's aking my BRRRR-STR not very brrrrable lol! Every other party taking part in this transaction will get what they expect out of the deal plus a lil' sumthin'. The seller has to be the happiest guy alive scratching his head about why we would have jumped back in the deal at 239k instead of 235k, when there weren't other offers on the table. He's one lucky SOB! While the hubby and I are holding the sh*t end of the stick.

We have until Friday to send the EMD. If the husband and I decide that we'd rather not close on the deal, what type of penalties might we face? Worst case scenario? To the agents reading, this is probably and impossible question to answer because, as with all things in real estate, it must depend on the market, but how would you have handled things differently? Also, feel free to tell me if am I overreacting and focusing on the wrong things.

Thanks in advance!

Hello BP Community,

I am reaching out in hopes that someone has knowledge of a loan product or some creative way to make the monthly payment on a property that I have my eye on more easily digestible. It's above budget, but there is most likely some room to negotiate because the house needs a lot of work, but it's mostly cosmetic the home was built in the 70s and has not been remodeled since, it even has shag carpet! It's currently listed for 950k but it's really a prime location for my future endeavors in real estate. There are several comps around it that are listed at 1.2 million+ so I believe that if we put in an offer and it's accepted in that range, there will be built in equity. The property has a large fishing pond and butts up against a river that is a very popular location for the area. A River House! Ultimately, we'd like to get a Tiny Home permitted as soon as the county will allow (and eventually a second since zoning allows for it) and list it on AirBnB to offset the mortgage.  We'll self manage the property. 

There are some challenges and unknowns that would need to be worked out too first before we can begin making money on our investment. The driveway requires some excavation/leveling. This way we can ensure that our guests have a safe driveway to reach the tiny home. We'll also need to get someone out to survey the land to make sure that building is ok, but this will be done during the inspection phase and will be made contingency. Also, we'll need new appliance so that there's a functioning kitchen as we will live in the main house as our primary. With this in mind, we'd like to use a a little cash as the deal will allow for purchase so that we can have the funds necessary to get those things handled.

According to AirDNA and a property management company in the area, we can expect the following:

ADR: 201

Occupancy: 71%

Annual: 51k

My first thoughts are to look for a 40 year mortgage option that would allow us to keep our monthly payments low until we are able to get our rental setup? If that's not an option, perhaps a 3-2-1 or 2-1 buydown loan product? 

Here are options that we have to access funds to in order to make the deal happen:

We plan to put down between 5-10% from bonds (hopefully nearer to 5%)

We have equity in our current home that we will rent out when we move to the new primary - (owe 476k, could sell for about 675k)

We have the ability to take out $50K as a 401k loan

50k in CDs (not matured yet) - but would really like to hold on to these for reserves

8k in stocks

10 - 20k from Family

Thanks so much in advance!

Corinne

@January Johnson, you're a gem! I was raised in a single parent household with a section 8 voucher. My mother was a very hard worker that worked for the county for 30 years but still couldn't afford the market rate for housing in Fairfax County. 

Some people just need a little help, for which they are grateful. I liken it to the same thing that we are all doing here in the BP forums, looking for a little help. :)

Continue to be kind, be empathetic and watch your blessings grow exponentially!

Corinne

Hello @Bonnie Low,

Thanks for your input. I also thought about reaching out directly to the owner to see if I could get any indication as to whether they were motivated at this time, and if so, by what. I found that it appears to be held by a living trust. Do you have any experience with reaching those individuals that are put in charge of a living trust? Does this typically affect the timeline of a sale for property?

Corinne

 @Michael L. Good luck! I don't know anything about the market but if for some reason a lead from that area is brought to my attention and it isn't a fit for me, I'll pass it along.

Hello @Michael L. ! Thanks for weighing in. Cash flow was definitely the name of the game for this one, so, it wouldn't be a good fit. 

According to your profile, you are in Baltimore. Do you invest in that market? 

Thanks,

Corinne

 Hello @Steve Vaughan! Thanks for weighing in! I have noted that most sellers would like to net 10% at closing and to keep it simple. Also I like the idea of "3-broad" stroke scenarios. 

Thanks again!

Corinne

 @Dan H. Noted! Ok. Thanks for defining that. I am looking to cash flow on this property, so if it's not going to do that as well as I had once projected, no harm no foul. I'll just keep looking. If anything, this is all a great learning experience and I am smarter more sound investor because of it :).