Should I ?
Im working on my first rehab and I had to a few issues arise.
I have a friend who was going to do the rehabbing to the property {alot cheaper than hiring a contractor } but since he got hurt, I was forced to get contractors involved.
The contractors were doing ok but it started to get more expensive than I was expecting and basically I ran out of reserve money since I was depending on my hurt friend.
Right now im paying Mortage plus rent so its taking me longer to finish the work thats needed to be able to move in.
Should I look into HML ?
The purchase price for the property was 105k and the FMV is 198k. Had it since May and the mortgage was coming out of pocket since Aug.
Thank god for having a supportive wife....
A hard money lender might be your best option at this point. Depending on how much work has been done, you can also try for conventional financing with cash back.
Can you please clarify a few things...Right now im paying Mortage plus rent so its taking me longer to finish the work thats needed to be able to move in. Are you paying rent on the home you live in and a mortgage on the rehab ? I am sassuming that the rehab is not inhabitable yet. What is your exit strategy, are you planning to live in the rehab or flip it for profit ?
Had it since May and the mortgage was coming out of pocket since Aug. Where was the money for the mortgage coming from between May & Aug ?
I am sassuming that the rehab is not inhabitable yet. What is your exit strategy, are you planning to live in the rehab or flip it for profit ?
The property is inhabitable...my exit strategy is as follows, where the house is at , HomeARama is happening, so right there the FMV is going to increase. My plan is once its up to stantards I will live in it and get an equity line of credit { My Cash Cow }and get my next one.
Had it since May and the mortgage was coming out of pocket since Aug. Where was the money for the mortgage coming from between May & Aug ?
It use to be a rental property to Sec 8. I gave them until the month of Jul because the house was destroyed. A little TLC and a few upgrades , the once ugly duckling will become your golden goose.
Hey Joe,
I see that are you new to the board, so welcome.
You will get numerous answers, some of which you feel comfortable with others that you will disgard. To you this is an ethical dilema, which it should be.
This is how a see it;
1, You have gone into a contract with an agent through her or her company has brought you a potential buyer. You have contracted with that potential buyer to purchase your house within a certain time frame.
2. You are not happy with your agent because you feel she is not doing all she can do to try to make the deal work within the time frame of the contract.
3. As a result you are looking at taking it upon yourself to contact with that potential buyer to work it out between you and them.
This is how I would handle it....
I would let the agent know that you are not happy with her services and as a result if the deal goes through, so will your contract with her. (Check with your state real estate commission but you should be able to write her a letter telling her that her services are no longer wanted and or needed) Be courteous and professional in your approach.
There is no reason to burn bridges in this business or in general.
2. For the potential buyer I would not contact them until after the contract between you and the buyer falls through AND you have severed the contract / relationship between you and your agent.
3. If you can reach an aggreement between you and the buyer then you should not feel guilty about your former agent not having the skills or knowledge to work out a creative deal..........it is not your job to teach her such things.
This is what separates the really good agents from those that get into the business thinking they are going to make easy money......................they are a dime a dozen.
I have an excellent agent that brings me deals (rehabs) and also helps me sell my specs. Time and time again she has worked her butt off to put together creative deals and or find the financing in order to make it work. On one spec home she cut her commission to 1 1/2 percent to make it happen.....however on the next home she sold (she was acting as a dual agent) I have her a 6 percent commissionon that one versus the 3 1/2 we normally work out. The last spec home I had was sitting on the market for over year due to things beyond our control (crooked developer etc...) she advised me to "lease it with a mandatory purchase to buy" to a couple with slow credit........which is what I did. She help me structure the deal to which she will be compensated when I get paid.
While I do believe that a majority of agents are worthless, there are some who really are good at what they do and are looking out for their clients interest. Unfortunately it sounds like you do not have that agent.
regards.
NC_Yank
[ Edited by NC_Yank on Date 12/04/2005 ]
I am sorry for the confusion, I am selling my house on my own. She is the buyers agent.
Thank you for your reply.
The contract gives until the 7th dec. To recorded the deed and have funds available to seller.
Joe
You may be able to contact the lender directly if permission was given in the contract or elsewhere in writing. (We have it in the contract funding clause boilerplate.) The lender will probably require this. If you have permission the lender is obligated to give you the projected funding date.
You should have a copy of the pre-approval and be sure to look over the "exceptions" (subject tos) before you call. Most "pre" letters are a waste of paper.
Also, check over any default penalty clauses that may be in the boilerplate of the contract.
Jim
I will go over the contract again. Thanks for the replys.
thanks for the help, I will ask if I can contact the lender.
actually adding a 3rd bedroom/ family room is a great idea and as a general contractor have done it for clients several times.
things to consider are electrical outlets( most places require 1 every 8 ft of wall) ceiling height( do you have enough room to raise floor) also consider radiant floor heating as most garages arent heated and it is compatible with many flooring types ie tile ,laminates,wood etc.
garage doors can be a bit tricky to remove because or springs etc, BE CAREFUL if you do this yourself. otherwise very easy to frame in opening , install windows/door way, sometimes a little difficult to match siding, brick, stonework
Family room would add more value if done right than a 1 car garage. The key to these is making it look natural and not "choppy" I might lift the floor up to the same height as the kitchen if the ceiling in the garage would allow it...
[addsig]
radiant floor heating comes in several price rangesand types and vary by local sodo a little research on the internet, cheapest heat to install probably would be electric baseboard. although it is probably most expensive to operate.
floors do not have to be raised for electric radiant but is a little/lot more involved for hot water radiant.also be sure to check insulation in garge exterior walls as many times it is not insulated. alsoa nice box bay or bow window really sets it off[ Edited by harveynailbanger on Date 12/05/2005 ]
Thanks Harveynailbanger for that info.
I will do some research on the radiant heat. A bay or bow window was what I had in mind. As far as insulation, I would want the walls insulated behind the drywall. Do you think I need a vapor barrier also on the walls , or is it fine to drywall as you would an inside the house room. The ceiling is stucco finish, so should I drywall ceiling or leave it as it is.
Thanks !