All Forum Posts by: Kenny Tan

Just a quick update, we just closed the deal on a 60 yr old 1900sf .25acre house. Seller chose our offer, there was a higher $ offer than us. (So we got a break, no all cash competitive offer)

This house is really a diamond in the rough. Good built, all hardwood flooring, many upgrades, beautiful but neglected large backyard with ornamental and fruit trees. Owner lived there 30 yrs, moving to senior community. We are very happy with the deal and felt lucky bc we had to endure many let-downs but ended up with the best outcome. 

@Chris Teti : Thank you for helpful suggestions. We did put a cap on repairs and appraisal gap guarantee, (it was a back-on-market deal), so the seller was looking for some assurance from us.

@ Terrell Garren : Ty. Good insight. We did use a quick close condition on our offer and had financing lined up. I think there were some electrical wiring issues and previous buyer backed out. I know what needs to be done, (some rooms lack of ground wire due to older construction), so it was not a deal breaker for us. Installing a few GFCI at branch outlet was easy, safe, code compliant.

Gift letter for cash down payment was not a problem for this conventional loan. We had to sign a letter to declare it was not a loan and will never be repaid. Our broker found a competitive fixed rate 30y with reasonable points. For 25% down, the lender really has no risk.

I really appreciate everyone's helpful comments.

True, that is a chance we are taking. They're far from average being quite frugal, almost never eat out, no car/gym payments...etc. From my past, almost always it got easier for me over time as home prices rise, income & equity also rise. Of course mileage may vary. 

@Russell Brazil 

One with the most cash wins, that's good to know. 😀

I will see how much a kidney can fetch, you dont need two anyway.

@Travis T. 

🙏 I will check out those sites. 

That's good insight. I appreciate it and will use this going forward.

Fall down 7 times and get up 8, right?

Thanks Joe,

That is interesting. They want to live close to work and high school for teenager. 

I am looking for a fixer, but they get snatched off market too.

Ok, thanks.

San Francisco Bay Area median RE sale price  $1.38 million. 

Sacramento (88 miles east (142 km)) median RE price $390K.

Hi, I don't know how far away is out-of-state. I am also sure with the right tenants you can make it work. But so much can go wrong. I need my boots on the ground to see the problems. Good luck.

Thanks Chris. Will talk to RE agent about this. We are in Greater Sacramento region, hot market. SF Bay Area sellers bring cash to buy properties at "half price". 

Seeking advice on creative financing. I am trying to help Sister-in-law family buy their first home. Their income is around $50K last year. We will help them with their savings to make 20% down. Basically gifting so no repayment expected. Their loan broker said they were pre-qualified for $480K house purchase. They made 5 offers all over asking price, cash buyer or huge down offers beat them.

I am thinking what other creative strategy can we use?

1. 1. Delayed financing. We borrow money make all cash offer. If accepted, have them refinance and pay us the loan. It sounds risky, can it done? Did any do this, not for your own house?
2. What other method can we use to bring more cash to the table?