mudcat
Platinum Member
Good Luck Alan!
Land we rent sold
- Thread starter AlanB
- Start date
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rox
Veteran Member
Gemini,
You did raise some very good points. You are taking a risk wtih a baloon note that in 2 eyars you can get financing. I only considered it form the perspective of the property, that it would be cleaned up however, if you had a loss of income, lsot oyur job etc. then perhaps you would not qualify for another loan. I guess in our circumstance we were sure of our abilities and situation to take those types of risks. But it is definately worth noting. Well hopefully Alan will get his loan today and won't have to go to plan B.
i do feel that plan B owner financing is not a bad plan at all, there is nothing wrong with it from alan's perspective. Of course i would want the actual deed in my name, and the seller takes a mortgage, instead of It stays in her name until the note is paid off. That i would not do.
IMHO the realtors have earned their comissions and i would not look for a way to short them of thier deserved comision. They both did their job and Alan wouldn't be at this point if it were not for his realtors. I got my fingers crssed for you Alan!
You did raise some very good points. You are taking a risk wtih a baloon note that in 2 eyars you can get financing. I only considered it form the perspective of the property, that it would be cleaned up however, if you had a loss of income, lsot oyur job etc. then perhaps you would not qualify for another loan. I guess in our circumstance we were sure of our abilities and situation to take those types of risks. But it is definately worth noting. Well hopefully Alan will get his loan today and won't have to go to plan B.
i do feel that plan B owner financing is not a bad plan at all, there is nothing wrong with it from alan's perspective. Of course i would want the actual deed in my name, and the seller takes a mortgage, instead of It stays in her name until the note is paid off. That i would not do.
IMHO the realtors have earned their comissions and i would not look for a way to short them of thier deserved comision. They both did their job and Alan wouldn't be at this point if it were not for his realtors. I got my fingers crssed for you Alan!
OP
AlanB
Elite Member
Where I am at this morning.
I have not written everything I do, as I try to be thinking a step ahead constantly and just start feeling things out for the "if this falls through" then what.
Yesterday while waiting, I had called two of the local mold abatement businesses. Serv Pro was $175 to come out and prepare an estimate for remidiation, the local owned business was Free to come out and evaluate, $200 If I wanted a formal written estimate and remediation plan to take too the bank. I have not scheduled either of those pending the outcome of the Farm Credit. I may call the local guy, even if the farm credit comes through, tell him I will give him $100 bill to come out and look and advise me on how to remediate and what his experiences have been. In my mind, it would be much like when my wife goes out and does a landscape design for a client that would be doing it themselves.
I also went and spoke with some folks that flip houses regularly that I work with a lot. Threw out the "angel" financing to see if there was a bite. He felt he could give me 100K next week if I wanted to go that way. 5 year terms.... 30 year amortization. Hanna has an angel she works for pretty regularly as well, I do not know him personally enough, but we may approach that avenue if this deal with Farm Credit falls through.
So, Gemini and Eddie, here is one that got my goat yesterday. My agent tells me she is going to go to First Federal, and get the letter from them stating they will not finance the house, and give it too the sellers agent.
I went through the roof. I wrote her and explicetly told her she will do no such thing, as I see it, that would give the seller viable grounds to back out of the contract. I have NO earthly idea why she wants to do this, or what she thinks it will help, but I am pretty darn PO'd at the whole thing right now with her. I wish she would decide if she can work with the banks in my name or not. Seems like when I want her to do something, she cannot do it with the bank, but then out of the blue somehow, she can go to this bank and get a letter stating it cannot be financed.
So, yep, this part of dealing with (I thought she was working for me) My realtor has me pretty wound.
You guys cross your fingers and toes for me
It also hit me a bit today as to why the original bank got squishy on the 185K house that the folks backed out on. Will explain more later, but it brings too the point this.
So many of these hangs are pretty easy for me to identify. The home to land value ratio is published and known, the comp ratios are published and known, there is so much information out there, that I found with just bit of looking, some of the issues that I could have just avoided had I realized they would be an issue, and I sure do feel like the "professionals" that I am working with should have clearly and concisely pointed them out and explained the hows and whys. After all, that is why I pay them.
Oh, and yes Gemini, I have been all over the web learning about Mold. Then comparing stategies to remediation, then equating to what I have to work with. I am confident that with a multi stage approach, I can remediate it as well as any commercial venture, and do it at considerably less cost.
I have not written everything I do, as I try to be thinking a step ahead constantly and just start feeling things out for the "if this falls through" then what.
Yesterday while waiting, I had called two of the local mold abatement businesses. Serv Pro was $175 to come out and prepare an estimate for remidiation, the local owned business was Free to come out and evaluate, $200 If I wanted a formal written estimate and remediation plan to take too the bank. I have not scheduled either of those pending the outcome of the Farm Credit. I may call the local guy, even if the farm credit comes through, tell him I will give him $100 bill to come out and look and advise me on how to remediate and what his experiences have been. In my mind, it would be much like when my wife goes out and does a landscape design for a client that would be doing it themselves.
I also went and spoke with some folks that flip houses regularly that I work with a lot. Threw out the "angel" financing to see if there was a bite. He felt he could give me 100K next week if I wanted to go that way. 5 year terms.... 30 year amortization. Hanna has an angel she works for pretty regularly as well, I do not know him personally enough, but we may approach that avenue if this deal with Farm Credit falls through.
So, Gemini and Eddie, here is one that got my goat yesterday. My agent tells me she is going to go to First Federal, and get the letter from them stating they will not finance the house, and give it too the sellers agent.
I went through the roof. I wrote her and explicetly told her she will do no such thing, as I see it, that would give the seller viable grounds to back out of the contract. I have NO earthly idea why she wants to do this, or what she thinks it will help, but I am pretty darn PO'd at the whole thing right now with her. I wish she would decide if she can work with the banks in my name or not. Seems like when I want her to do something, she cannot do it with the bank, but then out of the blue somehow, she can go to this bank and get a letter stating it cannot be financed.
So, yep, this part of dealing with (I thought she was working for me) My realtor has me pretty wound.
You guys cross your fingers and toes for me
It also hit me a bit today as to why the original bank got squishy on the 185K house that the folks backed out on. Will explain more later, but it brings too the point this.
So many of these hangs are pretty easy for me to identify. The home to land value ratio is published and known, the comp ratios are published and known, there is so much information out there, that I found with just bit of looking, some of the issues that I could have just avoided had I realized they would be an issue, and I sure do feel like the "professionals" that I am working with should have clearly and concisely pointed them out and explained the hows and whys. After all, that is why I pay them.
Oh, and yes Gemini, I have been all over the web learning about Mold. Then comparing stategies to remediation, then equating to what I have to work with. I am confident that with a multi stage approach, I can remediate it as well as any commercial venture, and do it at considerably less cost.
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EddieWalker
Epic Contributor
Alan,
I'm back and forth on my feelings towards your realtor. I didn't like her at first, then you said what a great friend she is and out for your best interests, and now she's out doing random acts without any reason. I've always been told to never hire friends or family for your realtor. It's too much money on the line and the stakes are too high for a friendship to last through any problems. You also find out just how smart your realtor really is.
It's your call, but I've dealt with quite a few realtors and like most things, there are only a few that are realy good. Most are OK and will get the job done, and the rest have no future in the field and won't be around very long. I'm thinking yours is in the OK group and is maxed out on her mental skills at making this happen.
I don't worry too much about mold either. It's not that hard to kill and get rid of. Where it gets complicated is when you get others involved. As to the dangers of it, there are some people that it will affect, but not many. The big lawsuit that started the entire thing was here in Texas, and after the 30 million dollar award was won, it was overturned when the apeal proved that the danger of the mold wasn't true and that they had lied about it. Not that anybody cared, the award is what made the news and the lawsuits began.
I know a few contractors in California who specialize in mold abatement. It's a joke, but they make a ton of money at it. They also jump through so many hoops and kiss allot of government but in order to keep doing it. Then if there is any mold the comes back down the road, they are the first to get sued. It doesn't matter if it's just surface mold in a shower or if the homeowners never closed the window and there's standing water on the floor. I won't do mold or insurance work for that reason, but if it's a property that I own, it's no big deal. Don't use regular bleach. Go to the pool supply store and get it there. It's cheaper and ten times stronger!!!!!
Good luck,
Eddie
I'm back and forth on my feelings towards your realtor. I didn't like her at first, then you said what a great friend she is and out for your best interests, and now she's out doing random acts without any reason. I've always been told to never hire friends or family for your realtor. It's too much money on the line and the stakes are too high for a friendship to last through any problems. You also find out just how smart your realtor really is.
It's your call, but I've dealt with quite a few realtors and like most things, there are only a few that are realy good. Most are OK and will get the job done, and the rest have no future in the field and won't be around very long. I'm thinking yours is in the OK group and is maxed out on her mental skills at making this happen.
I don't worry too much about mold either. It's not that hard to kill and get rid of. Where it gets complicated is when you get others involved. As to the dangers of it, there are some people that it will affect, but not many. The big lawsuit that started the entire thing was here in Texas, and after the 30 million dollar award was won, it was overturned when the apeal proved that the danger of the mold wasn't true and that they had lied about it. Not that anybody cared, the award is what made the news and the lawsuits began.
I know a few contractors in California who specialize in mold abatement. It's a joke, but they make a ton of money at it. They also jump through so many hoops and kiss allot of government but in order to keep doing it. Then if there is any mold the comes back down the road, they are the first to get sued. It doesn't matter if it's just surface mold in a shower or if the homeowners never closed the window and there's standing water on the floor. I won't do mold or insurance work for that reason, but if it's a property that I own, it's no big deal. Don't use regular bleach. Go to the pool supply store and get it there. It's cheaper and ten times stronger!!!!!
Good luck,
Eddie
OP
AlanB
Elite Member
Eddie, I so much agree with your above post it is not funny.
Roger that on the bleach, I may just have a good source.
Roger that on the bleach, I may just have a good source.
CurlyDave
Elite Member
My agent tells me she is going to go to First Federal, and get the letter from them stating they will not finance the house, and give it too the sellers agent.
I went through the roof. I wrote her and explicetly told her she will do no such thing, as I see it, that would give the seller viable grounds to back out of the contract...
Alan:
I would explore this a little further. She may have been trying to do you a big favor. I bet the contract just says "obtain financing" as a contingency and does not specify the lender.
If she words a letter to them that you are still looking at other financing sources, the offer and the acceptance are still valid, but the financing difficulties become a convenient club to beat the seller into submission on a lower price.
I don't worry too much about mold either. It's not that hard to kill and get rid of. Where it gets complicated is when you get others involved...
I know a few contractors in California who specialize in mold abatement. It's a joke, but they make a ton of money at it...
I think Eddie is 100% right on this. Mold abatement is usually nothing but a great big scam. They charge enormous amounts for something you can do yourself by addressing water problems and then using a bottle of bleach and a sprayer to clean up.
If you can get financing with the mold in place, I really think you can deal with it yourself for about 5% of what a mold abatement company would charge. Then get a brand new inspector, who has no knowledge of past inspections and reports to come out, and I bet you will get a clean bill of health. If you get anyone who has seen previous mold in the place to write a report they will cover themselves by putting in all sorts of statements about a possible return of past problems. You do not need this.
I went through the roof. I wrote her and explicetly told her she will do no such thing, as I see it, that would give the seller viable grounds to back out of the contract...
Alan:
I would explore this a little further. She may have been trying to do you a big favor. I bet the contract just says "obtain financing" as a contingency and does not specify the lender.
If she words a letter to them that you are still looking at other financing sources, the offer and the acceptance are still valid, but the financing difficulties become a convenient club to beat the seller into submission on a lower price.
I don't worry too much about mold either. It's not that hard to kill and get rid of. Where it gets complicated is when you get others involved...
I know a few contractors in California who specialize in mold abatement. It's a joke, but they make a ton of money at it...
I think Eddie is 100% right on this. Mold abatement is usually nothing but a great big scam. They charge enormous amounts for something you can do yourself by addressing water problems and then using a bottle of bleach and a sprayer to clean up.
If you can get financing with the mold in place, I really think you can deal with it yourself for about 5% of what a mold abatement company would charge. Then get a brand new inspector, who has no knowledge of past inspections and reports to come out, and I bet you will get a clean bill of health. If you get anyone who has seen previous mold in the place to write a report they will cover themselves by putting in all sorts of statements about a possible return of past problems. You do not need this.
slowrev
Elite Member
Of course the relalator might also have someone lined up to pay more for the property....
OP
AlanB
Elite Member
I don't have it in front of me, but I believe the terms were "residential financing" or something similar. I could get out of it, but the honest fact is, I do not want too, want to make it happen.
I also do not want the seller to get out of it, by saying that we gave them a letter saying I could not get financing, so the contract is off, (IAW the terms) and then with their (or was it mine, or was it the banks?) $143,000 appraisal in hand, putting it back on the market.
I figure the club will get put into play, at the end of the deal. I will have the no financing letter in hand, sit down to the table with the other realtor and the seller, and say I have done everything I can to get financing, and I cannot get it, I have the letter to get out, but really do not want too, what can you do too help me.
But, it may all be Moot. Looks like Farm Credit will do it.
There are still many opportunities for this to go sideways, but it looks positive at this point.
I also do not want the seller to get out of it, by saying that we gave them a letter saying I could not get financing, so the contract is off, (IAW the terms) and then with their (or was it mine, or was it the banks?) $143,000 appraisal in hand, putting it back on the market.
I figure the club will get put into play, at the end of the deal. I will have the no financing letter in hand, sit down to the table with the other realtor and the seller, and say I have done everything I can to get financing, and I cannot get it, I have the letter to get out, but really do not want too, what can you do too help me.
But, it may all be Moot. Looks like Farm Credit will do it.
There are still many opportunities for this to go sideways, but it looks positive at this point.
OP
AlanB
Elite Member
Talked a bit with the Farm Credit Lending officer today. He said no problem, they would lend 85%. The things that bothered others he considered normal and in line.
Looks like we are a GO at this station.
Now just have to hope I can pull it all together in the timeline in the contract. It is going to be CLOSE!
Looks like we are a GO at this station.
Now just have to hope I can pull it all together in the timeline in the contract. It is going to be CLOSE!
EddieWalker
Epic Contributor
Congratulations!!!
