All Forum Posts by: Saurin Pandya

They are popular nationwide wholesaler and definitely got everything covered for their own protection. I had a very long conversation and wholesaler would just not agree to call this deal off. They think it might be sellers remorse and they are going to make it work somehow...ugh.. 

@Jay Hinrichs - I tried to tag you in my response to Bill but it didn't work. Anyway - it's tricky. In email the wholesaler said that seller changed his mind but when I spoke with him he said the seller is a very old person and seems to have dementia. Also, when I spoke with paralegal regarding closing he said that he is not very clear on what's going on and will get back to me.... very weird!

@Lynnette E. - Thanks for your feedback. Makes sense! Its just too sketchy deal and may not be worth the time, money and hassle.

@Randall Alan - Great feedback! Thank you. The margin in this deals is not so high. Its a very small property and with 15-20K increase in the estimates I am bound to lose money. The chances are more expenses will show up once we start rehab and much more money at stake. I definitely have some good lessons learned by this experience and might just think 5k as the opportunity cost and move onto my next deal.. not worth the time and hassle to fight it with wholesaler.

It's tricky. In email the wholesaler said that seller changed his mind but when I spoke with him he said the seller is a very old person and seems to have dementia. Also, when I spoke with paralegal regarding closing he said that he is not very clear on what's going on and will get back to me.... very weird! 

We (My wife and I) bought an off market property for flip from a wholesaler with 5k down (non refundable if we back out). 

4 days before closing, wholesaler called us to let us know that the seller doesn’t want to sell the property anymore; I quote ‘probably has dementia'. But they still wanted to proceed with the closing as they assume that seller ‘may come around’. As per the contract, they still have 14 more days from the settlement date in case of any issues. I assume they want to pressure the seller on selling as per the binding contract. However, at this point we want to back out now because:

1) The whole deal seems sketchy

2) The rehab quotes from GCs ended up being much higher than our estimates 10-15k higher

3) Utilities are not turned on so there is a BIG possibility of more unknown expenses coming our way.

4) This will be a case of double closing so we won’t really know if the seller actually closed with the wholesaler. We will need to wire the funds a day before closing and if the seller doesn't show up on closing then wholesaler would extend closing to a future date and our funds will be stuck...

The dilemma here is if should we wait for the seller to back out so we can get our 5k back or back out anyways and loose 5K because of all the above reason.. leaning towards later.

What would you do? TIA. 

Thanks a lot, @Whitney Hutten. All great information. 

Hi Folks,

This is a question for anyone and everyone who started out with BRRR deal.

What advise do you have for a brand new investor who is looking to do their first BRRR? Can you give 1-2 examples of your biggest lessons learned. Any other advise?

Thanks much,

Saurin.

@Samara Huntley I am starting out as a new investor from Holly Springs, NC. My goals this year is to get at least 2 rental properties with a decent cash flow (10-12% cash on cash return) Are there any specific zip codes in Gastonia or Charlottes suburbs that I should be looking at for hot deals? I am looking at properties under 200K. Thanks in advance.

@Nathan Gesner , @Jaron Walling , @Jonathan Greene , @Antonio Cucciniello @Joe Cassandra- Great feedback, thank you all. I'd like to clarify that my home is in a great market (Morrisville/RTP area - NC, if you are familiar?) and my calculation of 'cash flow' is based on Brandon's calculator. The home is currently appreciating at 2-3% annually and expect that it will continue for many years. I guess, I am answering my own questions somehow but what I was trying to figure out is whether refinancing from 15 to 30 years is a good strategy or not with 2 main points to consider: 1) Getting 30 years mortgage will dramatically lower my mortgage (say by 40% of current monthly payment). With current rental rate in my area, I can easily cashflow $350 (i.e.6% CoC RoI) and 2) If I rent without refinancing, I'd end up paying $350-400 out of pocket or perhaps break even in best rent scenario. However, I'd be able to pay off property in next say 10 years and should be able to recover that additional out of pocket in 2-3 years or less.

Pardon my 'newbieness' (if that's a word? Lol)