All Forum Posts by: Shane Pico

 Thank for the reply! My broker says they have no claim, the appraisal and loan contingency are independent of each other so the decline letter is where the buck stops, and "I should tell them too pound sand" lol

Also, we were all extremely surprised with the appraisal. The property is in Joshua Tree CA which is pretty strange market to begin with, but I have been tracking it for a long time and I was confident in the price. They listed it for 550k and I offered that. I have seen smaller less updated homes sell for 700k + but those houses must not have been close enough. Another sign of my inexperience I guess. I should of put a cap on the appraisal waiver...

Hello all and thank you for any help!

I attempted to buy my first STR and it hasn't gone perfectly... But at least I've learned a lot so far! I am now at a place where it feels like I need a lawyer or at least some legal advice. Here's the run down:

Price: $550,000 - I signed an appraisal waiver - 1st appraisal: $425,000 - 2nd appraisal: $475,000 - my lender wrote a decline letter stating they wouldn't fund the loan (part of the loan required I had a certain amount of reserves in the bank and if a covered the difference I wouldn't have enough which is why they wouldn't fund)  - I sent over the decline letter and signed the cancelation of escrow and release of funds letter - a week later the seller offered to carry the loan with very poor terms - the seller is now trying to keep my emd ($16,500) - they are also threatening to sue me for incurred losses if I don't give it to them - they are claiming that because they offered to carry the loan, that I backed out of the purchase in bad faith and had no intent in purchasing. The simple truth is that the lender refused to fund the loan and I did not sign a loan contingency waiver. I even offered to give them $1,500 as a peace offering to get this wrapped up quicker. Yet here I am! lol

These are just the basics to the whole dilemma, I believe they have no legal right to any of my money, but before i go down this road I would love to have any bit of advice this community has to offer. I am still pretty new to this world so this can potentially be a huge set back for me if I don't handle it properly.

Thank you for everything BiggerPockets Fam!

***EDIT***

$11k was the down, I had the seller cover closing cost. in addition I put about $80k into the renovations over the next two years.

Investment Info:

Single-family residence other investment.

Purchase price: $370,000
Cash invested: $11,000
Sale price: $650,000

I house hacked this home, did all the renovations myself, then did a cash out refi to move into more deals.

I bought a house 18 months ago in Canyon Lake, CA (before getting into real estate). As a contractor myself I began fixing it up. Roughly 8 Months in, my house caught on fire. Bad timing since we were planning a wedding at that time lol. long story short, our brand new house payed for by the insurance company should be done in February and after all this with the help of the rapid increase in property value as well as few crypto investments I have more capital (and equity) than I thought I personally could ever have at this time.

As you all know, "I don't have time and I don't have money" are the two biggest excuses for people trying to get into real estate. The time issue is just a mindset in my opinion; if you want it bad enough, you will make the time. The money problem is more difficult, but it just takes some research and creativity to discover there are solutions. Lucky for me though, I have a little money now! So the big question and reason I'm here... what do I do now!? (sorry for beating around bush)

My short term goal is to replace my income and quit my job ASAP. Very Original... I read volume 1 and am currently reading volume 2 of the multifamily millionaire and I know that my long term goal is to buy commercial real estate and own as many doors as possible. I love the thrill of a risk and possible high reward diving straight into a relatively large out of state apartment complex. However; I am also considering buying a house or two somewhat local and listing them on air bnb. I keep telling myself if it makes money, it makes sense and there is no wrong answer as long as the numbers are sound and I've done sufficient homework. Is this true? Am I headed in the right direction? 

I would love to hear some feedback, advice, experiences or even just some resources (books, articles etc.) that may help me chose a path. Thank you for taking the time to read this novel and thank you even more for any responses. Happy holidays everybody!