All Forum Posts by: Ryan Fatula

So I received an offer on this property tonight. Full asking price however they're requesting 6% towards buyers closing costs, and its VA financing. In this market, I think they're aiming WAYY high asking for any contributions towards closing costs at all, especially 6%.

I'm going to counter with 1% towards closing and maybe go up to 1.5% but that's it. I've never sold a property VA before and I've heard some horror stories, mostly regarding appraisals coming in low. I'm confident it will appraise.

What do you guys think about VA financing??

Haha....yeah Bill about that lost opportunity cost calculation...I'll just assume its uhhh yeah.

Thanks for the replies guys. Definitely not going to let them move in prior to closing, and I hadn't thought about calling the agent on the other deal. However I was going to try and get some sort of verification of the sale, like an executed contract along with proof of funds etc. They mentioned they'd be willing to pay me as they received proceeds from the other sale, like the $40k chunk in Feb.

Hey everyone, so I'd like to get your input on a situation I have going on with one of our rehabbed properties.

I just received an interesting phone call from someone who saw one of our yard signs at one of our recently completed rehabs. The prospective buyers are from out of state and sold a house to move down here. Their story is, they have some cash from that sale, but are getting 2 more lump sum payments from that sale, one in February for $40K and " the rest" in May. I told them I'd send them pics, and after hanging up with them and sending the pics, they immediately called back telling me they LOVE the property and we've scheduled a showing Monday.

In that second conversation they are already talking numbers, which is great, but I'm of course skeptical due to the circumstances of the sale of their other home. They told me they could put $5,000 down and would be able to complete the sale of the property in May. Keep in mind, due to a 90 day deed restriction on this property, I can't transfer title until 3/13/13 anyways, so it would be another 2 months after that before we could close the deal. They're happy with the asking price AND in this situation I am paying nothing towards a buyers agent. Basically, I don't mind waiting if they pay asking price and put $5k down.

What do you all think about this situation? How would I proceed forward? Write up a contract with the $5,000 down and make it very clear that it's NON REFUNDABLE once inspection period passes? If they ended up not closing that $5000 would definitely cover the extra 2 months holding costs, and leave me with about $3,600 to keep. I'd of course have to calculate the lost opportunity cost of those funds that are continually tied up in that deal not making me $$ elsewhere on other deals. Maybe I could get them to agree to continue to market the property for back-up offers, and possibly have a "cut-off date" for them to submit proof of funds to close.

I don't want to get caught up in an overly complicated deal, but $5000 down is sizeable amount on a $77,900 property. As a point of reference we would have about $62,850 invested in it by the time May came around, including the holding costs to get to that point.

Thanks in advance for any thoughts on this situation!!

This will be my 3rd year as an agent and I'm moving to my 3rd broker. I've spent the majority of my short career as an agent buying and selling my own properties, and the brokerage I'm moving to is centered around agent/investors and its a perfect fit. I'm also getting a WAYYY better split compared to the big name retail broker I'm leaving!

How many brokers have you guys worked for??

Well I had absolutely no showings the two weeks prior to NYE, and in the last week since then I've had about 6 or 7 I believe. I am planning on sticking to my list price because comps support it as value and our hard money lenders subject to appraisal supported this price as well. Come February if I don't have another offer I will drop the price a bit.

I've gotta admit, I have been a little spoiled by how fast some of our other rehabs went under contract last year, so for this to be on the market for 30+ days kinda stinks, but its getting action immediately after the holidays like I had hoped, and I realize 30 days isn't that long when 90DOM is average for this area.

You guys have confirmed what a couple other agents have told me in regards to the seriousness of "holiday season buyers". Also, I had contemplated taking it off the market to re-list it again in January for no other reason but to keep the DOM number down, but I don't think someone is going to see too much of a difference between a fresh listing and 20-30 DOM. Plus, who knows who might come along during the rest of the year, and as Will said its ready for market so no sense it waiting.

Thanks for the replies fellas.

Hey guys I just wanted to get your opinions and experiences pertaining to listing your rehabs during the holiday season. I just listed our latest rehabbed property about 11 days ago, and I've had several showings and 1 offer a few days ago which was too low to accept and they weren't willing to come up at all.

I don't think it's time to lower the price as I know it's priced well in addition to it only being the 11th day. I guess I will have to just suck it up and wait for January to come.

What are your holiday listing experiences? Any advice? Thanks in advance!

Any of the HomeVestors guys care to update us on how it's going?? I'm considering it.

Thanks. I just bought it on my iPad and will likely start on it tonight!

Im looking for a new book to read and was hoping you guys had something for me. I just finished reading "The Cold Hard Truth" by Kevin O'Leary from Shark Tank which I thought was decent. I re-read Trumps "The Art of the Deal" right before that.

I like business books but definitely not looking for any how-to stuff. I like insight and stories from tough business guys.

Any suggestions?