All Forum Posts by: Chelsie Runnings

Hey BP Community.

I am one week away from closing escrow and by buyer can not get lending on the property due to a mold issue.  The Underwriter approved the loan after the appraisal came in at value but put conditions in place before the loan can go through. 

One Major one being Satisfactory inspection performed by licensed contractor specializing in mold hazards, all health/safety issues to be resolved and Satisfactory roof inspection and clearance.

The Buyer had already planned to do a complete renovation down to the studs, new roof included. He has no problem doing the repairs, but he wants to do them him self, not through licensed contractors.  He has done a few previous properties (3 Right next door to this one) 

He is not open to doing any hard money loans, but he is considering doing some sort of lease to own contract while the repairs are completed, and then take a loan out. We just found out about a notice of default that was just recorded as well.The seller is the court appointed administrator administering this Estate. He and the buyer know each other very well, and work fantastically together and both have the end goal to just close this property and move on as quickly as possible.

I am looking for any suggestions to get us to close escrow so my client can start on his renovations. Any Lenders who would work with us in this particular situation?He was planning to do 20% down.  We have explored a lender hold back on funds, but that doesn't address the need for a licensed contractor, at least to those we have spoken too. 

Suggestions or advice are appreciated!

TIA!

Hey, BP Community!

Help and Input Needed:

I'm putting together a buyer's seminar, most likely will focus this one on First Time Buyers in Sonoma this time.

A few questions:

When you bought your home what do you wish you knew that you didn't learn until afterward?

What do you think your biggest obstacle was to overcome to purchase?

What one piece of advice would you give a first time buyer?

I appreciate your help!

In Sonoma County we saw a 3.5% decrease in price from November 2017. We lost over 5,300 homes in the Wine Country fires last October. Making the inventory of available homes was unseasonably low for the last three months of last year. The inventory of homes and condominiums available in Sonoma County at the end of November stands at 1,018,  90% ahead of the inventory in November 2017 (535) and down 12% from the inventory last month (1,160). A relatively high inventory for recent years but not an unreasonably high number for historical purposes. Some of the percentages are quite high comparing this year to last and that is partly driven by the fires last year. 

Hi @Nadia Alrawi, Nice connecting!! 

Hang tight. Signs are pointing to a shifting market, a more balanced market. 

The inventory of homes and condominiums available in Sonoma County at the end of September was at 1,198. That's 33% ahead of the inventory in September 2017 (899) and is down slightly from the inventory last month (1,216). This remains a relatively high inventory. The average Days on Market for the County as a whole is 59 days (the highest since January of this year. 

The appreciation rate has settled down from the 12% year over year increase in the first part of the year. This continues to point to a shifting market.

Oh and here is the link for the next Sonoma-County-Real-Estate-Investors-Meetup

Hi @Chaz Mathias, In the mindset of protecting assets, you should speak with an Estate Planning attorney as well. Setting up a proper trust can protect your assets not only now, with your future wife, but also for the future should something happen to you. I work with some excellent Estate Planning Attorneys in Sonoma, who can also advise on pre-nups as well. I would be happy to connect you if interested. 

@Nicholas Hamblen Sorry to hear of your situation. I agree with Jay above, reach out to the broker. A Quality broker and firm will allow you to terminate the agreement. It sounds as if you agent/brokerage doesn't have much invested in it anyways. Best of luck to you!

Hey @Chad Lewis Welcome to BP! I live just around the corner from you in Sonoma!

@Zab Khan I would recommend the Feb. 6 Sonoma County Investor Meet up. The Director of the Permits department will be the guest speaker. https://www.meetup.com/Sonoma-County-Real-Estate-Investors-Meetup-Rohnert-Park/events/245650196/

@Justin Hayman Welcome to BP! So nice to connect on here. I would be happy to connect you with some one to assist you with your HELOC if you are needing that. Just let me know. I work with closely with a handful people who I would be happy to connect you with to get the best assistance. I hope all goes well with the re-build! I am looking forward to it.

I also agree you should attend the Investor Meetup on February 6. Such a wealth of knowledge you will walk away with!

Feel free to reach out anytime!

@Michael Guzik @Aaron K. @Max Gradowitz Thank you guys for the input! I laid out some numbers and options. I took all emotion out of it and used facts, broke down the numbers, unfortunately we could not make it happen. She was in a rush and wanted the full amount now.  I am happy that she gave me the opportunity to present the offer to her, I took my first step towards my goal of property investing and that was approaching and presenting an offer. However, I believe she knew from the start what she wanted and would not settle for anything outside of that.