All Forum Posts by: Joy Y.

Thanks, Howard. I have sent them an email asking for more information on the reason for extension. I'll know more tomorrow. I believe they have ordered survey, etc. and they have applied for the loan, etc. So there have been investments, both time and money, on their part already.

Thanks Wayne, that's certainly possible.

Ha! I could be called a "nervous nellie" first time seller too. :) 

Hi all. I've got a deal where my tenant is under contract to buy the property I am leasing to them. This is not a lease-to-own, the lease is one agreement and the purchase is a completely separate deal. It just happens that tenant is buying. 

Anyway, the tenant has been in the property for 4 months (on a 6 month lease). At the time of contract, they originally asked for 20 day inspection period and I insisted on the standard 15. From the time they sent me the first offer until we executed was about 2 weeks of negotiating (so, this inspection period was known to be needed, and time of the essence, blah blah). We're approaching the 15 days (day after tomorrow) and they have requested tonight an extension for another 5 days. 

Is there any reason they might be using the extension to back out? Is there any reason why I might not want to grant this? I would like to sell the house, am trying to make this easy on everybody. However, if I don't sell it, the property does cash flow and I'm ok keeping it as a rental. I'm not negotiating on the price any further, nor on any concessions and I'm not paying for any repairs except I did agree that IF FHA requires repairs for the loan, I will do up to $2500. Prices are rising in my area. I haven't seen a property like mine go on the market for less than what I'm asking...in fact, most listings are 50K more than our agreed price. They are getting a good deal, and so am I. If they bail, it's ok with me. I might put it back on the market, AND she will keep paying me rent until she finds someplace else to go.

I guess I don't necessarily want to be a jerk about this, but I also don't want to be taken advantage of either. I know inspection periods are pretty important for most deals where there is competition, but I don't have other buyers, and I don't HAVE to sell this property in any urgency either. 

Thoughts? I may call my attorney tomorrow, but he'll want to be a hard ***, just because. :) I'd rather hear what the investors think. 

When I was interviewing realtors as both seller and buyer representation, I was upfront with them and told them that I am interviewing several and would be making a decision. Then I paid close attention to who worked for it. One rose to the top, she answered my questions, made herself available, was transparent and came to our meeting with a proposal, comps, etc. Others who couldn't be bothered to return my calls, or come to the interview prepared were quickly short listed. 
 

Thanks, Wayne. I was wondering how much of it was "art" as you call it, vs hard and fast rules.  

I am negotiating with my tenant (through her father who is an attorney) for her to possibly purchase my 5 acre agricultural zoned farm and 2/2 house. They hired an independent appraisal ahead of the formal contract/loan process and are using that appraisal to try to negotiate down the price with me. 

Here is my problem: the appraiser used subdivision spec houses on 5,500 SF lots as comps. To adjust for the land, he came up with some valuation of land in the area that I'm not really certain how they came up with it of $.70 SF. I provided the buyer with what I thought were more appropriate comps of 5 acre properties that are in adjacent towns, all less than 10 miles away. They are insisting that their lender is telling them that for FHA the appraisal MUST be in the same town. Is that true? Even for a unique property? I'm skeptical of this comment, and feel it is being used as a tool to negotiate my price lower.

I would like to sell the property, but then again, I'm getting a nice cash flow with it as a rental too and I really don't want to go lower on my price. Though they are only asking me to go down $5K, I feel like I should just tell them to give me the contract at my asking price and we can negotiate down if we need to after an official FHA appraisal is done.

I also know of a house IN my zip code on a large piece of property 2 streets over (though it is 2.19 acres, not 5) with a similar SF house that is under contract and due to close at the end of the month for $50K MORE than my price. I am happy to wait until that property sells and then we can have a comp that more than justifies my price AND I will collect rent in the meantime. 

Looking for someone who understands FHA appraisal process and any feedback/ideas on other items here that might jump out at someone.

You may want to see if you can find someone (not a friend--they want to make you happy, and you need someone who will be upfront with you instead of telling you what you want to hear)  who would be willing to "role play' with you and give you honest feedback on what might be going on. 

It could be body language. It could be something going on with culture or social norms. It could be the confidence and first impression you're giving regarding your experience. Most of these folks could be nervous and fearful of the transaction--especially if they are in a dire position or have never dealt with an investor before. So, they head into it fearful and you might be doing something unconsciously that reinforces that anxiety/fear. 

The only way you'll know is to get someone unbiased who can help you figure it out. Maybe meet someone at one of the REIA meetings and take them out to dinner to role play with you.

 I've used a different brand, but vinyl plank floating flooring in my own home now turned rental. This stuff is DURABLE, easy to lay down, warm and looks just beautiful.  My sister and a friend of mine have the Home Depot brand and it's lovely too. From what I understand, it's made from the same types of products as exterior vinyl siding--it can take a beating. The ONLY hesitation I'd have for using it in a rental is WATER.  I had a leak in my bathroom, and didn't notice for quite a while because the water went UNDER the vinyl and wasn't noticeable for a period of time. If you use it, be very specific about notifying you of water leaks, no matter how minor they think they may be....AND give them specific cleaning instruction. Wet mopping this stuff is a no-no. Swiffering or residential grade steam mopping (like the inexpensive Shark model) is fine, and really all that is needed. 

I put this down, originally, because of pets in the house. I put it in every single room. Easy to clean, and doesn't have problems when there is an accident (thats discovered in a reasonable amount of time) or toenail scratches, etc. It's also pretty easy to take a section up and replace it. Nice if you can just go to Home Depot and pick up a box. 

Hi, I'd like to join just to listen, learn and network. I know virtually nothing and wouldn't be able to contribute in any way. 

 Hello, @Adrian Smude

I've been using Craigslist as well, looking for horse properties with houses or mobile homes. I'd love to find a property management company who is experienced handling horse properties, but I don't even know where to start. My realtor, not experienced in these matters, tries to pull comps from the subdivisions--and it's just not the same motivation for payment. Most people pay anywhere from $150-300 a month per horse for what is known as self-care or partial barn (this is not full service board which includes the horses food, bedding and the 2x daily labor which can be $450-600). Being able to live with their horses and provide care themselves saves the tenant money, but also provides me with a more profitable investment.  (at least, that's what I think/hope will be the case)

I did use the calculator using my outstanding mortgage balance as the purchase price of the property and I included forecasted tax and insurance expenses as well as including lawn/property maintenance costs AND I calculated it using 10% property management. I'm not sure if I should calculate it using the outstanding mortgage or the net proceeds of what I think I might be able to sell it for as the "purchase price". Any thoughts on that?