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Archive for the ‘Hard Money’ Category

I got an email today regarding a 1/2 price sale  on the Private Money Blueprint course from Patrick Riddle and Trevor Mauch.  I read the sales page and decided to bite the bullet and purchase the course.  It was an offer I couldn’t refuse! 🙂  Part of the reason,  besides the price, that I purchased it was because when submitting our REO offers lately, we seem to be getting some issues from banks about our pre-approval letters.  I’m hoping that if we have some private lenders set up, it may make the offer process a bit easier (like making all CASH offers).  I know many people are already PMBP members,  so I’d love your feedback on the program, if you wish to comment.  Oh, and one of the reasons they were holding a sale is because Trevor and his wife had a brand new baby girl – so congratulations to them!  I’m a sucker for a cute baby story!

Also, just a quick update on our latest REO offer.  We’ll, it’s still in limbo.  Partly because they’re doing a Title V (septic) inspection on the property. Once we get the details on that, we will adjust our offer accordingly.  Also, it’s pending because we offered way low (like 80k under asking), based on our estimated repairs.  The house has been on the market over a year.  The bank’s Agent told our Agent that the bank wouldn’t consider our offer and that we should make a “reasonable” offer.  Really?  You’ve been sitting on this house more than a year…isn’t any offer at this point reasonable?  He gave our Agent this song and dance about the bank needs to satisfy their stockholders and such.  Also, he told her that we were just wasting her time and that because we had a pre-approval from a hard money lender, that these types of buyers “never work out.”  What a jerk.  I am sure he’s been burned by other investors before but come on…he doesn’t know me or my husband or what our situation is. He doesn’t know that we’ve done a couple rehabs in the past (our own residences), that my husband has been a contractor, etc.  He can go pound sand, as my dad used to say!  So, who knows if that deal will work out either.

I’m still getting some nibbles from our inherited property mailing, too. The guy I mentioned last time basically wanted retail price, so I told him he’s best to re-list the house with the new Agent.  Another guy called me from out of state, so if he’s the sole owner of a house he inherited here in New England, maybe that’d be a deal.  I also got a lead (via Craigslist) from a landlord on a rental property in town that’s in excellent condition.  He’s asking more than what it’s worth (in my opinion), but I still need to research more. Maybe he’ll do owner financing, who knows?

That’s it for now.

Happy Investing!

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True Hard Money

Image by madmolecule via Flickr

Well, it’s been another interesting week.  After much discussion, calls, emails, etc. regarding the REO offer we submitted, we decided to move onto another deal.  I’ll try to make quite a long story short. 

Our Agent had submitted our offer – the P&S, $1000 earnest money, pre-approval letter, etc. to the listing Agent for the bank.  Right after submitting the offer, the listing Agent said he couldn’t submit the offer to the bank with our pre-approval letter.   Personally, I could not understand why he would not submit the offer to the bank…they were probably going to counter our offer anyway.  Our rehab (hard money) lender provided me another letter, which I submitted to our Agent. She said the listing Agent didn’t like this letter either, since the letter didn’t mention the downpayment amount.  I got in touch with the lender and she said that she couldn’t note this amount (or %) in the letter yet, it’d depend on the final accepted offer.  Makes sense to me, but the listing Agent wouldn’t have it.   We tried to explain that the offer price will likely change by about $30k if the house didn’t pass Title V (septic) inspection, which was likely.  All this still didn’t matter…the listing Agent said they wanted a letter from a “direct lender.” 

So, in the past week, I talked to a couple other different lenders and got lots of helpful info.  Also, when I talked to my original lender, she mentioned that on occasion, some banks don’t accept her letter, because the bank think she’s a broker, which she’s not – she does her own loans.  Then the listing Agent suggested we offer to put more money down.  That’s when I really started to get annoyed.  Why are they asking for all this stuff when they haven’t even submitted our offer to the bank? 

After much deliberation, my husband and I decided to pass on this one.  If the bank was going to give us this much hassle to submit an offer, what were they going to do afterward?  We didn’t see the need to jump through all these hoops when there are so many other houses out there.  On to the next one. 

Have you ever had such difficulty submitting an offer on an REO?  Did you ever have a valid, thorough and very detailed pre-approval letter get rejected? 

Happy Investing! 

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