All Forum Posts by: Jobee Vincent Buenaventura

So the mortgage commitment deadline is on June 22 and the buyer’s lawyer states that they don’t have any obligation to move forward with it unless the tenant removal obligation is resolved. However according to my lawyer we would have a right to cancel the contract if any party fails to meet a deadline. My deadline is by closing, so contractually they would breach first by tomorrow. And I believe that their lender would not issue a mortgage commitment unless they have the appraisal. 

The buyers would like to have it vacant in order to do some renovations and can’t have any tenants in the units. 

Hey everyone. Thanks for everything so far. It seems that I am going to work with my lawyer in a cash for keys agreement with the tenants to see where they stand to keep us in good faith of fulfilling the contract. Funny thing is now the buyers are going to breach their contract as well since they failed to have the mortgage commitment by the due date.

According to my closing lawyer and realtor, the buyer’s side seem to have stopped progressing through the closing process because of the situation with the tenants having to move. So I technically didn’t breach anything yet. But their mortgage commitment is due on the 22nd and they didn’t even schedule the appraisal yet. So I don’t know what’s gonna happen from here. Do I have a leg to stand on now?

Hey everyone,

Just wanted to cut to the chase, the rider was signed to deliver the property vacant (my mistake). We just finished the inspection phase and at this point under contract my tenants don’t believe they can move out by the closing date at the end of this month. We are exploring the cash for keys option but the tenants aren’t sure if they can find another place in time and have the unit cleared by then. So I can’t guarantee to the buyers when the property can be delivered vacant.

Do I have any other options? Is this something buyers would sue for if it’s even worth filing a lawsuit?

Looking for advice. Thank you!

@Carlos Ptriawan

Yes, in my area, prices are still climbing but not as crazy as in 2021-2022. So now I’m thinking of selling before it starts to really flatten out. Buyers are still putting in multiple offers for properties in the northern NJ area.

@Theresa Harris

Ah right! I forgot that I can look into that option. As far as I know if I can’t close a new property within the time frame I just pay the capital gains taxes. That’s another learning opportunity for me as well.

@Mike Dymski

Right, that’s why I’m thinking to recover my funds and then use that money to buy 1 or 2 better performing properties, potentially. I’m just a little torn because I know those commissions and taxes will take a big chunk out of my net gains, so would it even be a good move?

I have a 2-family property in NJ that can potentially sell for $500k according to comps given to me by my realtor.

I bought it in 2020 for $390k. In 2021, I cash-out refinanced and it appraised for $450k. I used the money for the down payment on my current single family residence. As of now I owe $350k on the loan.

I net around $500 monthly but I am thinking of selling it in order to use the funds to get experience working with a private lender/hard money for home flips/BRRRR. I also have a headache tenant that I inherited from sale that I can't get rid of just by not renewing the lease due to NJ tenant law protections. And they're careful enough not to royally f-up our lease agreement.

So my gross profits would be roughly $150k but after commissions/fees and capital gains tax it seems I’ll net perhaps just above $100k.

I feel like my property has already appreciated by a good amount. So I’m on the fence of whether to keep the current cash flow or sell and then reinvest whatever Uncle Sam or the brokers didn’t take from me. Would $100k+ be enough to delve into the world of private lending/hard money?

@Scott Winter thank you! Ideally I am looking to gain from the refi. As the $125,000 rehab cost and $600,000 ARV is also a conservative number because it may even appraise up to $625,000. We shall see. I am still a beginner without large capital reserves so I'm very wary of minimizing risks where I can.

Hopefully they will accept my offer. The property is in preforeclosure and the seller may be a bit stubborn still trying to sell a distressed property for market value. Been on the market for 3 months now.

@Andrew Postell I have cash-out refinanced only one other time and I saw that I was qualified for up to 80%. I was just using 75% as a conservative number. Unless every situation and property is different, but I’ve been going by my past experience.

However, this is my first time using hard money and it does sound prudent of me to contact my lender about it. I wouldn’t want to be stuck with that hard money interest rate for more than needed. So I will look into it, thanks!

@Matt Devincenzo ah you’re right I didn’t take that into account