All Forum Posts by: Kyle Allen

I was able to negotiate with the seller. We agreed to 63k and I'm paying closing costs. I required the inspections prior to signing anything and he agreed sure enough there was termite damage but no live infestation it was from a prior treatment. We shouldn't be closing in free weeks since it's a a cash deal this no was probably the most frustrating de deal ive dealt woth personally bit im people have other worse she way worse. He was defintely shady and drug this out almost two months which really cuts into my work time beforr winter which is going to out me out me way behind sxhedule but the money just makes sense i got him down 22k off his asking price and the avr I'll be in be in the mid 200krange. I feel good about the deal and What matters is how the numbers work out. Thank you to you to everyone for your input.

We finally agreed to the o orice and closing fees but now he wants me to pay his entire year of property taxes. And he also is refusing to let me have a termite inspection done at my cost until I aign a contract with him to buy as is. My lawyer is sending terminal plug to terminate the contract if we find a live infestation in the property. I don't think yhi k he finds this okae sentimental as he jisy night it and let the house deteriorate and nevertheless lived there. So this is solely based on expenses at this point with him. 

@Mike Cumbie Well after agreeing to his 62k he now changed his mind and wants 65k. lol  I think this guy is just going to keep doing this unfortunately.  He even went so far as to take the proration of taxes out of the contract.  

@Mike Cumbie  Thank you for your response!  This was my opinion as well but i had several people tell me to walk away from the deal or tell him 60k or no deal but i know i'm already getting a good price regardless of the 2k bump.  I just didn't care for his underhanded tactics of trying to sneak the increase in the price without so much as talking to me about it.  I had it in writing at 60k so it was frustrating to see especially after paying my lawyer for the initial contract which was simply a waste of money if he had no intention of selling it on contract in the first place. I stand to make a large profit on the house in the overall scheme of things.  But it was extremely frustrating for him to be very shady in his business practices and made me curious to what else he would pull before the close of the property.  Overall given that he originally was asking 85k he has come down a long way and even though a cash offer is generally much less i'm sure his expectation on the property was to sell for much more than the 60k he agreed to.  I appreciate your response on this.  

I have been working on negotiations with a seller for over a month now and I am becoming extremely frustrated with his constantly changing stance on the deal. Originally he agreed to 75k with 10% down and would finance to me for a year before i refinanced the place to pay him off after the rehab was completed. This property is gutted and unable to obtain a conventional loan at this time. He agreed to selling this way and had told me to have my lawyer draw up a contract. Once that was completed i sent it to him and he responded almost immediately saying he no longer wished to sell on contract as it was risky and he would prefer a cash offer. This was frustrating but i proceeded. We negotiated down to 60k cash offer with me paying all inspections and closing costs. He stated he would have his lawyer draw up a contract with the terms we agreed on. When he sent the contract over the purchase price was now 62k and had me even paying his lawyer fees. When i questioned him on the price change without even so much as speaking with me he became defensive and stated that he was already much lower than the agreed upon 75k originally.

i responded that i would never have agreed to the higher purchase price originally had he not been financing the place in the first place. My lawyer made the changes and sent the contract back to him with the 60k amount with 5k down and closing in 30 days and required a walk through before signing. 2 days have now passed with no response and i'm about to follow up with him today to see what the issue is. I offered to pay 60k we agreed on plus all closing expenses and have my lawyer handle all titling and transfers OR i would pay him the 62k and he would be responsible for his own. After researching it appears he just paid 2k in taxes a week ago and i'm assuming he is trying to recoup the money he just spent but this is poor business practice in my eyes. Have any of you experienced a difficult seller like this? I would hate to lose this deal over 2k but feel like he is being shady with his agreements and its sending up a lot of red flags my way.

@John Warren will I need additional funds to secure the refi at the end of the period? As in will the bank require 20% down or will they cash out refi up to 80% or the ARV? Just what to Ben prepared when the time comes to refi. Thank you!

Thank you for your response Harjeet! Just wanted to clarify. The original bank recommended I get an I ital commercial load then refi after I completed it but this seems silly to pay two closing costs. 

well then 6 months is the time needed minimum for yhe rehab. When doing a refi where the house value is much greater tho wouid I still need to come up with another 20% down to process the loan? I see them do yhr brrr method but was curious where after paying for renovations people are getting additional money for yhr refi. I'll have next to 100k cash in this place when it's done burn yhr house in this area would sell for around 250k.  I alays see people taking about cash out refi but how does this work?

I am looking to purchase a property cash by using my 401k loan to finance the purchase. i also have 50k in savings from my last house flip to fund the renovations. I am looking into using my 401k to buy the house outright as the owner has gutted the property and i cannot get a conventional loan. the bank has stated i could do a commercial loan for a short period but there would be closing cost. Then i could refi once i get the house in a livable condition. However since i have the 401k loan option should i just purchase the house cash and wait 6 months to refi? Its seems silly to me to process 2 loans in a short period. I generally would never touch my 401k but if i can pay it back in 3-6 months would this be a viable option? I would love to hear any opinions on this subject as i keep going back and forth with this and need to make a decision this week. Thank you all!

I am looking to purchase a property cash by using my 401k loan to finance the purchase. i also have 50k in savings from my last house flip to fund the renovations. I am looking into using my 401k to buy the house outright as the owner has gutted the property and i cannot get a conventional loan. the bank has stated i could do a commecial loan for a short period but there would be closing cost. Then i could refi once i get the house in a livable condition. However since i have the 401k loan option should i just purchase the house cash and wait 6 months to refi? Its seems silly to me to process 2 loans in a short period. I generally would never touch my 401k but if i can pay it back in 3-6 months would this be a viable option? I would love to hear any opinions on this subject as i keep going back and forth with this and need to make a decision this week. Thank you all!