All Forum Posts by: Derek Mizysak

I see you got a 75% LTV refi. Would they have done 80% do you know? I keep finding banks that are 70% LTV max.

Great job, what bank did you use for the first mortgage and refi mortgage? I am in the same area, working on securing my first BRRRR property

@Russell Brazil and @Minna Reid Great conversation, I am glad I asked the question. For now I have the property under contract and the wheels are in motion. I will let you know how it pans out for me in the coming weeks. I am meeting with the seller's agent tomorrow to go over timelines and what to expect from here on out.

Thanks again everyone!

@Russel Brazil, to the agent I was a more appealing offer. Which means she’d be more inclined to advise the seller to pick me since she’d get the whole commission. That was my thought at least, maybe I’m wrong. Either way, the paperwork does have a 10 day clause for the inspection so I will get that done. I would hope that while the agent is going through the lengthy process to pitch my offer to the bank, and I have the signed acceptance from the buyer and paying for an inspection that they wouldn’t continue to stack up additional offers on the back end to almost start looking beyond me as a buyer if someone comes in 2 weeks and offers $5,000 more. That seems pretty sketchy. Understood the bank makes the final call but an accepted offer from the seller should start the process and close the door on additional offers right now. Isn’t that how it’s supposed to work? Some of you are making it sound like the Wild West and no signed agreements matter.

Thanks Minna Reid for the insights. I’m meeting the sellers agent Friday to walk through timeline. A lot of people on here freaked me out that I went without an agent. Understood there is a risk but I think that’s what made me a desirable offer to begin with. I’ll keep you all posted ....in 2 months, ha!

Originally posted by @Brent Coombs:

@Derek Hebert, seeing as (it reads like) you're already gazumping someone with prior (probably conditional) claim, what's to stop someone else doing the same to yours?

The bank can argue: the first non-conditional offer to meet our minimum, wins! Good luck...

She said the other offers never came up high enough and therefore never were accepted (by the seller). Since the seller accepted my offer, doesn't that secure the property for me? So no additional offers can be entertained until the outcome of my process? Understood the banks have the ultimate say but I didn't think other offers could be entertained.

I went straight to the sellers agent because I was told through an online inquiry that there was an offer on the property that was being accepted. I reached out myself since the house was in my neighborhood I called the sellers agent and asked. Turns out the offer that was “to be accepted” was not solidified. So basically since I didn’t listen to what the one receptionist told me, I was able to secure the property myself. The paperwork is subject to an inspection but I need to look at clauses on the timeline. As of right now the sellers agent told me to hold tight while she gets the deal prepped and ready for the bank approval. Apparently that takes a while. She’s confident it will be accepted since it was on the market 6 months with no hits. I guess we will see. I had a real estate friend help review the offer she drafted up and he said it looks like a well drafted doc so I am feeling pretty good right now. I’ll double check on the timing but even if I have to shell out the money on the inspection ahead of time, it wouldn’t be the end of the world.

Long story short the seller accepted my offer and now the deal has to be approved my the bank. The house was sitting since June with no activity and they dropped it $20k and I offered $7,000 off he new price. My offer is subject to the inspection. My question is: my offer was subject to an inspection and the sellers agent suggested I do one ASAP but I don’t want to pay for an inspection of the bank hasn’t accepted my offer yet. Then if they decline it, I’d be out my inspection money. Can someone help me understand if I should be proceeding with the inspection before the bank accepts? Or is it ok to hold off until the bank accepts? I should also clarify that I am not working with an agent, just myself so kinda flying blind in some regards. Thanks, DM

Hi @Shawn Ackerman, this deal has a cash on cash return of 20% running conservative estimates with a cap rate of 8%. This was an MLS property but the price was lowered quite a bit this month. Kinda helps it's 4 blocks from my current duplex so I know the area very well. I submitted an official offer yesterday, waiting to hear back by tomorrow!

Also, big shout out to @Pat Parrillo for the assistance on this one. Really helped me feel comfortable that I was submitting an air tight offer, thanks again!

So moral of the story just keep an eye on it? Thanks fellas, have a nice Thanksgiving!