All Forum Posts by: Derek Johnson

Thanks guys, Marcus Maloney it is pretty much ready, needs a little paint and such. Yes I have browsed BP for quite some time and love the resources here. I thought I had my plan all figured out but now that I took the leap I keep feeling like I forgot something. Hoping for a smooth close, and then I will definitely be hitting the forums with specific questions. We put probably 5 or so offers in before this one, so I was kind if surprised when it stuck. It was lucky, it was under offer and the previous buyers financing didn't pan out. It relisted and had two more bids within a couple days. We got in when they asked for best and highest, snuck it out of there. I'm guessing it will bring $850-$950 / mo so it should have real decent cash flow, and stable because it's close to a good high school and in a desirable school district. Took my leap of faith on it, now we'll see how it pans out!

Our offer was accepted on an REO property. It's a 3/2 with a detached 2 stall garage in a good location. It was listed at $65,000 after several price declines from $112,000. It's assessed at $95,000 currently by the county info. Sold in 2008 for $105,000. We offered $69,100 and no contingencies and beat two other offers. I'm excited, as I've been researching for around 2 years about building wealth through real estate. I'll need your help, so keep in touch with me. Haha!

Does a bad roof disqualify it for conventional then? I don't think an appraiser would notice as from my experience they just drive by, take pictures and don't look to closely at anything. The roof isn't THAT bad on the house, one of the garages does definitely need repaired ASAP. But we're thinking of trying one last time on this house before moving on.

I would do 20% down if that would help close and get the financing done.

Thanks for the quick responses everyone. I think we are moving past this one. It seems too good to be true at that price so it probably is anyways. They made it a point that there could be no FHA loan only conventional financing, so the 203k is out. They must know of some issues that it will not pass an inspection/appraisal.

We put an offer in on a property and it ended up falling through due to financing. It is now re-listed at $59,900 CASH ONLY. We had an inspection done and it didn't turn up anything too serious, needs a new roof and a few other things.

I really wanted this house because it is so discounted. But now that it says CASH ONLY does that mean they won't even consider financed deals?

Another thing is the whole roof is not flat, just the addition. So part of the roof has a pitch with shingles and the addition is L-shaped with a flat roof.

@Dawn Anastasi - We have a contractor coming today. Haven't gotten a quote yet but I have had several people tell me flat roofs are a pain and expensive. The seller wants to close by Sept. 9.

@Mike Giudici - I was planning to hold long term because the cash flow for rent would be great. $1100/Mo estimated rental income, but if this roof is going to be $15k every ten to fifteen years that puts a damper on my plans.

W put an offer on an REO property for $65,200 and it was accepted.

It has a flat roof! I have heard these can be expensive to replace, and it would need done soon. Can they really be upwards of $15k? It is probably around 1000sqft. of it.

The property is valued around $107k in a desirable area, but I didn't foresee the cost of this roof (I estimated $5-$6k). We have a 3 day window to request it be fixed by the seller (it won't be), per our inspection clause to get out of the deal? Any advice?

We countered at $63,900, $1500 earnest and kept the rest the same. Now we wait again.

The bank countered!

Seller counter -

Offer Price - $68,500
Earnest money - $1,500 (Certified check)
Inspection days - 7 days
Financing - Conventional
Closing date - 9-9-13
Per diem - $100/day

Question and note from seller:
1. How much does this buyer have down?
2. Will this property qualify for this loan in AS-IS condition?
3. Seller is not making any repairs.


Our original offer was:

Offer price: $62,500
Earnest money - $500 (Certified check)
Inspection days - 10 days
Financing - Conventional Insured
Closing date - 9-9-13

I have $15,000 to do this deal, how can I make it work and what should I counter back with? I want to do 10% down but with them wanting conventional financing isn't that 20% (uninsured)? I COULD do it, but then have no funds left for repairs. The repairs that I saw could be done while we live there or prior to us moving in. Need s ome input! My thinking is this:

There have been no other offers so,

$65,000 Offer
$500 Earnest
Inspection - 7 days
Financing - Convention Insured
Closing Date - 9-16-13
Per diem - $100/day

Q's
1. 10% down
2. Yes
3. Fine

What do you think?