All Forum Posts by: Terry Z.

@Jenny Roman

How is renegotiation possible is a sales price is already agreed under contract? It is legally binding already, correct?

@Cameron Johnson

Just curious, is personal line of credit the same thing as personal loan? If it is personal loan, it is not secured, correct?

@Andrew B.

Yea, I agree with you. Contract is a contract. It is not cool to back out. I will follow through. I would rather lose some money than having no integrity

@Aaron Morrow

Thank you Aaron, there is no earnest money and there is no non refundable deposit. And I did not check anything close to verbage like seller has the option to sue.

So I have a house under contract and I am the buyer. Due to ongoing virus situation, I want to back out from the sale so that I don't over leverage and have more cash reserve in case anything happens. However, the process has passed the inspection stage and just waiting for loan to approve and it will approve eventually.

If I insist back out and seller sue me over that, how bad it will get to? I am trying to see the worst scenario. There is no earnest money in the contract.

@Izzy B.

Well said. Thanks for your input on this topic. This does not change my long term goal of investing in real estate at all. Just like the stock market, it will eventually come back and move forward. I am more questioning myself if the timing is right. Should I wait a bit. I have another college rental house that was closed recently and sit on the market right now. Paying two mortgages at the same time if school closes for a prolong time is a little bit nerve wrecking to me when I think about that.. but yes, I already included vacancy in my numbers, it is just not that much of vacancy (3,4 months or longer). I can survive, but if I have a choice, I would rather not go into that mode

@Roni Elias

The concern is 2 to 4 weeks are just the start. It could extend indefinitely. The deal has not closed yet. I am wondering if I should be jumping into the uncertainty and be optimistic.

@John Baker

Sounds like I may need to prepare for a period time of vacancy, longer than normal, maybe?

So I am in the phase of closing a deal on a SFH. It is in a college town so this will be a student housing most likely. With the recent University moving classes to online and send students home, I don't know if I should proceed with the deal. I have a hard time to assess the situation and evaluate how big this virus thing would impact college rentals. I would like to hear the investors who have college rental experience.

@John Kutrzeba

I totally agree with you. Yea, just have to learn through mistakes. I had to sell my first rental because I did not do numbers, and although it was postive cash flow, I could find better margin, so I went ahead and sold it.