Wow. So much has happened over the last several days, I'm not sure where to begin.
House #1
The tenants finally moved out on Saturday. Man, it was tough to see them go as they were the best tenants anyone could ever dream of having. The lady kept insisting that her husband would mow the grass one last time, but their lawn mower had broke recently and they would ned to borrow one. I told her not to worry about it. I went by the place Sunday to do a formal walk-through and was absolutely stunned at how clean it was. The carpet looked in better shape than when I gave it to them, so I guess they did get a professional carpet cleaning crew in to clean it. It just looked like an almost brand new home.
I picked up a "For Sale By Owner" sign at HD, along with a flyer tube. When I got to the house to inspect it, I totally forgot about a magic marker, so I'll put the sign up later today. I'm also going to make a small sign on a piece of corrugated plastic I have that says "FOR LEASE", so I can market it that way as well.
House #2
I spent a few hours last Thu and Fri at the house doing more projects. Every time I went by the house, I would forget the digital camera, so I don't have before pics of the drywall holes. I already fixed the two smaller areas, but just need to spackle them (and paint, of course, later). The larger, 3'x4' section was a pain to repair - especially since it has a light switch right in the middle. I had to buy a 2"x4" and cut it into 2' sections to act as a brace. I also got a bandit sign stake to use as a brace in a 2"x4' section on the adjacent wall. Once that was up, I got some joint compound and covered the edges and screw heads. I still nee to apply some "mud" to level it out and then spackle and paint it, so I still have a long way to go before it's finished.
My main chore right now has been painting. I finished Bedroom #1 and the adjacent hallway section on Friday. Saturday was my wife's birthday, so I only managed to get in a couple of hours. I spent most of those doing the drywall I mentioned above. Sunday, I spent 8 hours over there. In that time, I got the remainder of the hallway, Bedroom #2, the Utility Room, and the pantry area all painted. I swear it takes more time prepping an area to paint than actually painting it. I also got the kitchen prepped for painting, too. I still need to paint it, the breakfast, the family room, the master bedroom and bath, the entry and the dining rooms. Whew! I also have to around and caulk a lot of areas, buy/hang doors, do something about the carpet, and do general cleaning inside and out. Lots more to do.
Builder Going "Cheap"?
When I first started working on the house, I would notice small things about the house that at first I thought were poor housekeeping by the previous tenants. Now, I'm really starting to think the builder went cheap with this house. It's mainly small things, but added up really show me this builder really gets the cheapest materials and the cheapest labor (evidentally). For example, almos anywhere there is caulk, it is already rotting and falling off. Joints where the baseboards and door frames meet have a noticeable gap. The linoleum in the breakfast and utility room is already starting to curl. And so on.
24" = 23.5"?
Okay, maybe someone out there can explain this to me. Question: When does 24" = 23.5"? Answer: When you buy an interior door. Seriously, what the heck is up with buying interior doors? I have to replace (at least) 7 interior doors in House #2 due to holes in them, etc. I bought one door early on for Bathroom #2. I measured the original door and it was 24" exactly. So, I go to Home Depot and buy a 6-panel, 24", prehung interior door. Not only were the brackets not aligned, but there was a gap in the door when it was in the closed position! I measured the door, and it said 23.5"!!! WTF?!?!?! n one of my daily trips to Home Depot, I borrowed one of their tape measures and started measuring likeable doors on their floor. All the 24" doors I measured were 23.5". The 30" doors? 29.5". The 36" doors? 35.5". And so on. Can some tell me why this is?
Carpet
The more I walk around the house, the more my gut feel is telling me to have someone just install new carpet. The cheap stuff will do as I am hedging towards renting this property out (at least for 12 months). There are just too many small rust-colored stains all over the place, it needs restretched in multiple areas, and it looks very worn in the high-traffic areas. I'm guessing the builder already put the cheapest carpet available in the place, since the place is only 3 years old and the carpet is already worn. There is carpet everywhere except the kitchen, breakfast, entry, and bathrooms, so I may be able to get it all done for only a couple grand. Still deciding.
Reimbursement
Just today, I finally got the check from my broker for his reimbursing us for the HUD extension. It's been 12 days since we closed, and I've been trying to meet with him to pick it up. Finally, I just gave him directions to my work and told him to leave it witht he receptionist. I went by there today and sure enough it was waiting there for me. Now to see if it clears.
Possible Networking Connection
While I was in Home Depot yesterday picking up yard signs, I ran into a lady that works there. I happened to be carrying the "FOR RENT" sign I'm going to use for House #2 at the time, and she stopped me and started asking me questions. She wanted to know what types of rentals I have, and I told her I have one 4/2 available now and a 3/2 available in a couple of weeks. She said she manages a small apartment complex in a nearby town as well as working at Home Depot part time, and she says she always has tenants that move out and want to rent (or own) a home in this area. I told her that'd be great. She then told me the name of the apartment complex she manages, and the name rang a bell in my head. I had run across this same complex for sale recently, so I asked her if it was the same one. She said, "Yes". I asked her if she knew why the owner was selling, and she said due to health reasons. She gave me her info and the apartment complex owner's info, and I told her I would call them both soon.
If I recall, the apartment complex wasn't a great deal, so I'll have to redo the numbers. If possible, I may offer the owner a creative offer to see if he bites, but I want to talk to him first to get a better idea of his position and what he REALLY wants to do.
Monday, October 30, 2006
Friday, October 27, 2006
House #2: Base Price Jumps (again)
I was looking at the floor plan again for House #2 on Lennar's web site, and noticed they hiked the base price of the home again. This is the second increase in just a few months. When I first found out I won, I checked the base price and it was $135,990. It then went up to $137,990 a few weeks later when I checked. It's now $139,990!
Thursday, October 26, 2006
House #2: Repair Work Started
Almost a week after closing, I finally began working on House #2. Here is a detailed list of items needed work for each area/room:
Some items span multiple areas/rooms. I'm still debating whether to do the drywall repairs, carpet cleaning, and carpet restretching on my own. I've never tried repairing drywall or restretching carpet. The carpet itself is borderline salvageable, too. Since my main focus will be on renting, I'm not TOO concerned if it doesn't come out looking brand new. Here is more information on the items denoted by a subscript number:
[1] Drywall repair. There are a total of four areas that need the drywall repaired: 2 in the master bedroom, 1 in the garage, and one BIG area in the small entry to the master bedroom. I figure one sheet should cover everything (and then some). I found some good advice about repairing drywall, but not sure if I want to invest the time & effort doing it my own. I figure if I do it my own, it should only cost about $30 for all the materials. I already have a reciprocating saw I can use, along with most of the other tools. Estimated cost: $30/$150.
[2] General Cleaning. This includes all "punch out" work like cleaning insects, scrubbing the tubs, washing the windows, etc. It's more time-consuming than costly. Estimated cost: $25.
[3] Paint Walls/Ceiling. I have the total I spent on House #1 written down somewhere. I think it cost a few hundred for paint and paint supplies for that house (which is 300sf larger than this one). Estimated cost: $300.
[4] Clean Carpet. I recall running through a lot of carpet shampoo on House #1, and I figure this one will be just as bad - if not worse. There are more spot stains in this carpet, too. Shampoo is expensive, if I recall. I'm wondering if I should get the pros in to do both the cleaning and restretching. Estimated Cost: $50/$250.
[5] Restretch Carpet. I've never done this, but it doesn't sound too difficult. I'd have to rent the knee kicker from HD or Lowes for about $10/day, plus buy the other materials. Maybe have the pros do it? Estimated Cost: $20/$100(?).
[6] Replace Smoke Alarm Batteries. No big job at all. It took me more time to figure out where the batteries go than it would to swap them out in all 6 locations. Estimated Cost: $15.
I'll figure an extra $500 for cost overruns. Therefore, if I do this all myself, I'm looking at a repair bill of around $1,300. If I let the pros handle the carpet and drywall, I'm looking at around $1,700. This is still largely under my initial estimates of about $3,000.
Est. Time
Area/Room Work Needed (Hours) Est. Cost
============= ===================== ========= =========
Outside Clean debris 0.25 $0.00
Clean driveway 0.50 $5.00
Mow, as needed 3.00 $5.00
-----------------------------------------
Subtotal: 3.75 $10.00
============= ===================== ========= =========
Garage Fix hole in wall 1.00 $0.001
Pound out door dent 0.25 $0.00
Remove boards 0.25 $0.00
General cleaning 0.50 $0.002
Fix door knob 0.25 $0.00
Fix garage door lock 0.25 $4.00
-----------------------------------------
Subtotal:2.25$4.00
1.75
============= ===================== ========= =========
Entry General cleaning 0.25 $0.002
Paint walls/ceiling 0.50 $0.003
-----------------------------------------
Subtotal: 0.75 $0.00
============= ===================== ========= =========
Dining Room Repair chips in wall 0.25 $5.00
General cleaning 0.25 $0.002
Paint walls/ceiling 0.75 $0.003
Clean carpet 0.50 $0.004
-----------------------------------------
Subtotal: 1.75 $5.00
============= ===================== ========= =========
Utility Room General cleaning 0.50 $0.002
Paint walls/ceiling 0.50 $0.003
-----------------------------------------
Subtotal: 1.00 $0.00
============= ===================== ========= =========
KitchenAdjust pantry doors 0.25 $0.00
Level oven 0.25 $0.00
Fix oven burner 0.50 $5.00
General cleaning 1.00 $0.002
Paint walls/ceiling 0.75 $0.003
-----------------------------------------
Subtotal:2.75$5.00
1.75 $0.00
============= ===================== ========= =========
Breakfast Caulk linoleum floor 0.50$5.00
Remove curtain rods 0.25 $0.00
General cleaning 1.00 $0.002
Paint walls/ceiling 1.00 $0.003
-----------------------------------------
Subtotal:2.75$5.00
2.00 $0.00
============= ===================== ========= =========
Family RoomRemove wall clutter 0.25 $0.00
General cleaning 0.25 $0.002
Paint walls/ceiling 2.00 $0.003
Clean carpet 1.50 $0.004
Restretch carpet 1.50 $0.005
-----------------------------------------
Subtotal:5.50$0.00
5.25
============= ===================== ========= =========
Hallway #3 General cleaning 0.25 $0.002
Paint walls/ceiling 0.50 $0.003
Clean carpet 0.50 $0.004
Install HVAC filter 0.25 $5.00
-----------------------------------------
Subtotal: 1.50 $5.00
============= ===================== ========= =========
Hallway #1 General cleaning 0.25 $0.002
Paint walls/ceiling 0.50 $0.003
Clean carpet 0.50 $0.004
Install S/A battery 0.25 $0.006
-----------------------------------------
Subtotal: 1.50 $0.00
============= ===================== ========= =========
Bedroom #1 Install closet door 0.25 $41.00
Install closet knob 0.25 $11.00
Install main door 0.25 $41.00
Install main knob 0.25 $11.00
General cleaning 0.25 $0.002
Paint walls/ceiling 1.00 $0.003
Clean carpet 0.50 $0.004
Restretch carpet 0.50 $0.005
Install S/A battery 0.25 $0.006
-----------------------------------------
Subtotal: 3.50 $104.00
============= ===================== ========= =========
Hallway #2Replace door stopper 0.25 $1.50
Repair small hole 0.25 $0.001
General cleaning 0.25 $0.002
Paint walls/ceiling 0.50 $0.003
Clean carpet 0.50 $0.004
Install S/A battery 0.25 $0.006
-----------------------------------------
Subtotal:2.00$1.50
1.75 $0.00
============= ===================== ========= =========
Bathroom #2 Install main door 0.25$36.00
General cleaning 1.00 $0.002
Replace towel rod 0.25 $5.00
-----------------------------------------
Subtotal:1.50$41.00
1.25 $0.00
============= ===================== ========= =========
Bedroom #2 Install main door 0.25 $41.00
General cleaning 0.25 $0.002
Replace door stopper 0.25 $1.50
Paint walls/ceiling 1.00 $0.003
Clean carpet 1.00 $0.004
Install S/A battery 1.00 $0.006
-----------------------------------------
Subtotal:3.75$42.50
3.50 $41.00
============= ===================== ========= =========
MBed Entry Fix drywall 2.00 $0.001
General cleaning 0.25 $0.002
Paint walls/ceiling 0.25 $0.003
Clean carpet 0.50 $0.004
Restretch carpet 0.50 $0.005
Install S/A battery 0.25 $0.006
-----------------------------------------
Subtotal: 3.75 $0.00
============= ===================== ========= =========
M. Bedroom Fix drywall #1 1.00 $0.001
Fix drywall #2 1.00 $0.001
Install main door 0.25 $41.00
Install main door h/w 0.25 $10.00
Replace door stopper 0.25 $1.50
Replace switch plate 0.25 $1.00
General cleaning 0.25 $0.002
Paint walls/ceiling 2.00 $0.003
Clean carpet 1.25 $0.004
Restretch carpet 1.00 $0.005
Install S/A battery 0.25 $0.006
-----------------------------------------
Subtotal: 7.75 $53.50
============= ===================== ========= =========
M. Bathroom Repair door jam 1.00 $10.00
Install main door 0.25 $36.00
Install closet door 0.25 $34.00
Replace door stopper 0.25 $1.50
Replace 4 wall plates 0.50 $5.00
General cleaning 0.50 $0.002
Paint walls/ceiling 2.00 $0.003
Clean carpet in closet 0.25 $0.004
Replace towel ring 0.25 $4.00
Install faucet knob 0.25 $4.00
-----------------------------------------
Subtotal:5.00$94.50
4.25 $85.00
============= ===================== ========= =========
Grand Total:50.00$371.00
46.75 $307.50
============= ===================== ========= =========
Some items span multiple areas/rooms. I'm still debating whether to do the drywall repairs, carpet cleaning, and carpet restretching on my own. I've never tried repairing drywall or restretching carpet. The carpet itself is borderline salvageable, too. Since my main focus will be on renting, I'm not TOO concerned if it doesn't come out looking brand new. Here is more information on the items denoted by a subscript number:
[1] Drywall repair. There are a total of four areas that need the drywall repaired: 2 in the master bedroom, 1 in the garage, and one BIG area in the small entry to the master bedroom. I figure one sheet should cover everything (and then some). I found some good advice about repairing drywall, but not sure if I want to invest the time & effort doing it my own. I figure if I do it my own, it should only cost about $30 for all the materials. I already have a reciprocating saw I can use, along with most of the other tools. Estimated cost: $30/$150.
[2] General Cleaning. This includes all "punch out" work like cleaning insects, scrubbing the tubs, washing the windows, etc. It's more time-consuming than costly. Estimated cost: $25.
[3] Paint Walls/Ceiling. I have the total I spent on House #1 written down somewhere. I think it cost a few hundred for paint and paint supplies for that house (which is 300sf larger than this one). Estimated cost: $300.
[4] Clean Carpet. I recall running through a lot of carpet shampoo on House #1, and I figure this one will be just as bad - if not worse. There are more spot stains in this carpet, too. Shampoo is expensive, if I recall. I'm wondering if I should get the pros in to do both the cleaning and restretching. Estimated Cost: $50/$250.
[5] Restretch Carpet. I've never done this, but it doesn't sound too difficult. I'd have to rent the knee kicker from HD or Lowes for about $10/day, plus buy the other materials. Maybe have the pros do it? Estimated Cost: $20/$100(?).
[6] Replace Smoke Alarm Batteries. No big job at all. It took me more time to figure out where the batteries go than it would to swap them out in all 6 locations. Estimated Cost: $15.
I'll figure an extra $500 for cost overruns. Therefore, if I do this all myself, I'm looking at a repair bill of around $1,300. If I let the pros handle the carpet and drywall, I'm looking at around $1,700. This is still largely under my initial estimates of about $3,000.
Wednesday, October 25, 2006
S-L-O-W Going
Wow. I thought after the closing was over and my JOB eased up a bit, I'd be in a better position to start working on House #2. Not so. I have yet to actually make ANY progress on the work I need to do for the house. Monday, my wife had an appointment, so I had to go to watch te kids. Yesterday, the kids had an appointment, so I had to go as well. Both times, we managed to get stuck in traffic and not get home until almost 7pm. By then it's starting to get dark, plus the fact that we have to unload everything, get the kids fed, get us fed, etc. Yesterday, though, I HAD to go by the house to do two things. First, I wanted to shut the breakers off to the water heater and other major appliances. The electric is scheduled to be turned on today, and I didn't want the water heater sitting there heating water for no use. I also wanted to check on the ant situation to see if my drenching worked or not.
It turns out the poison did it's job, and the ants look to be completely history. I poked all around what was left of the mound, and saw no activity whatsoever. Thank goodness! There were 100's of dead ant corpses lying around and the dirt from the mound was all over the place. I'll need to wash that area real good. I also found the breaker to the water heater, and shut it off. I STILL need to call the city to start water & sewer service. I'll try to do that today.
On a different, but similar note, I got a response to the email I sent my broker for this deal. He said we could meet for lunch this Friday so he can give me the $125 check he owes me. I have no pleasure in talking with the guy, let alone sitting down to eat with him. My time is limited anyway, so I'll just tell him we can meet, but I have a ton of other commitments, so I can't eat lunch with him.
It turns out the poison did it's job, and the ants look to be completely history. I poked all around what was left of the mound, and saw no activity whatsoever. Thank goodness! There were 100's of dead ant corpses lying around and the dirt from the mound was all over the place. I'll need to wash that area real good. I also found the breaker to the water heater, and shut it off. I STILL need to call the city to start water & sewer service. I'll try to do that today.
On a different, but similar note, I got a response to the email I sent my broker for this deal. He said we could meet for lunch this Friday so he can give me the $125 check he owes me. I have no pleasure in talking with the guy, let alone sitting down to eat with him. My time is limited anyway, so I'll just tell him we can meet, but I have a ton of other commitments, so I can't eat lunch with him.
Monday, October 23, 2006
Detailed Walk-thru and Ants!
I went by House #2 yesterday to start working on it. Actually, I just wanted to do a thorough reassessment of what all I need to do to bring it up to "For Rent" condition. I went through each room and took detailed notes of what all needed my attention. I actually found a couple of things I had overlooked in the other walk-thrus and inspection. First, there isn't just one place where the drywall was damaged (and sloppily repaired), but many. Most of the holes were in the garage wall, but I'm not too concerned with those. The "original" hole was in the master bedroom, where the door knob had hit the wall. There is actaully another patch job located on the opposite wall, too. It was done a little better, but still could use some attention. The person who did these patch jobs used one of those drywall repair screens - you can actually still see the screen, which makes it look terrible. The other place inside was in the entrance to the master bedroom - and it's huge. I knew something was wrong with the wall before, but the lighting was bad in the area, so I couldn't really tel what was wrong. When I was there yesterday, the light from outside made it possible to really see what was going on. It appears that an entire section of drywall was replaced. And, like the other two repair jobs, it was done poorly. Not bad for an amatuer, I guess, but not very good once you really look at it.
When I got home, I started combing the web for tips on drywall repair and found one on Yahoo! Answers. The best answer to the person's question on repairing dryall was something I hadn't thought about. The guy said to cut a peice of drywall a little bigger than the hole you are repairing. He said to go by a home improvement store and ask for peices of drywall that the store doesn't need (people cut drywall slabs and the store just throws the smaller peices away anyway). He said to find some wood lattice or 1x2's and glue, put carpenter's adhesive on them, and insert them into the hole to be used as a brace for the peice of drywall you'll install. Let it dry completely, then put glue on the peice of drywall and lightly tap it into the hole. Let it completely dry as well. Then put spackle/mud, paint, and you're done.
Another surprise I hadn't noticed before was in the master bathroom. I already knew about the repair work needed on the door frame near the bottom (peices of the frame were hacked off somehow and I would need to putty and repaint it). This time, I noticed that the bottoms of botht he bathroom door and the closet door inside the bathroom were frayed as well. I'm now guessing they put a dog in the bathroom and he had tried to scratch his way out. Great - two more doors needed.
Other than those things and a few other minor things that was all the surprises I found this go-around. As I was leaving, I noticed a mound next to the garage door on the outside. I noticed it before, too, but never thought to investigate further. Now I wish I had. I kicked the mound, figuring a few ants would emerge, but to my surprise a whole swarm of ants appeared - and they just kept coming and coming. They definately weren't termites, which was my initial fear, but they didn't look like fire ants, either. I figured they were carpenter ants. Since I didn't just want to leave the place like that, I hopped into my car, went to Home Depot (which, thankfully for this project, is only a mile away) and picked up some termite/carpenter ant spray. I went back to the house and started spraying the mound. The small sprayer attached just wasn't doing the trick, so I unscrewed the cap and started pouring the liquid right on the mound. Hundreds, if not thousands, of ants started coming out again. This time, though, they'd wiggle and succomb to the poison. I'm not sure how deep the mound went or if it extended inside the garage wall, but I doused the whole area with half the bottle. I'm going to go back tonight to see if it killed them all. If not, I'll unload the rest of the bottle on the mound. I have never seen so many ants before in my life, and that's a huge statement having lived in Texas for so long.
When I got home, I started combing the web for tips on drywall repair and found one on Yahoo! Answers. The best answer to the person's question on repairing dryall was something I hadn't thought about. The guy said to cut a peice of drywall a little bigger than the hole you are repairing. He said to go by a home improvement store and ask for peices of drywall that the store doesn't need (people cut drywall slabs and the store just throws the smaller peices away anyway). He said to find some wood lattice or 1x2's and glue, put carpenter's adhesive on them, and insert them into the hole to be used as a brace for the peice of drywall you'll install. Let it dry completely, then put glue on the peice of drywall and lightly tap it into the hole. Let it completely dry as well. Then put spackle/mud, paint, and you're done.
Another surprise I hadn't noticed before was in the master bathroom. I already knew about the repair work needed on the door frame near the bottom (peices of the frame were hacked off somehow and I would need to putty and repaint it). This time, I noticed that the bottoms of botht he bathroom door and the closet door inside the bathroom were frayed as well. I'm now guessing they put a dog in the bathroom and he had tried to scratch his way out. Great - two more doors needed.
Other than those things and a few other minor things that was all the surprises I found this go-around. As I was leaving, I noticed a mound next to the garage door on the outside. I noticed it before, too, but never thought to investigate further. Now I wish I had. I kicked the mound, figuring a few ants would emerge, but to my surprise a whole swarm of ants appeared - and they just kept coming and coming. They definately weren't termites, which was my initial fear, but they didn't look like fire ants, either. I figured they were carpenter ants. Since I didn't just want to leave the place like that, I hopped into my car, went to Home Depot (which, thankfully for this project, is only a mile away) and picked up some termite/carpenter ant spray. I went back to the house and started spraying the mound. The small sprayer attached just wasn't doing the trick, so I unscrewed the cap and started pouring the liquid right on the mound. Hundreds, if not thousands, of ants started coming out again. This time, though, they'd wiggle and succomb to the poison. I'm not sure how deep the mound went or if it extended inside the garage wall, but I doused the whole area with half the bottle. I'm going to go back tonight to see if it killed them all. If not, I'll unload the rest of the bottle on the mound. I have never seen so many ants before in my life, and that's a huge statement having lived in Texas for so long.
Friday, October 20, 2006
Two Houses
Well, we closed on House #2 yesterday afternoon. It actually went a LOT quicker than when we closed on House #1 - mainly because we didn't have to wait over an hour to start.
I had a couple of questions about the HUD-1 I got answered beforehand, so there weren't any surprises on it at closing. The one issue that came up was the fact that my wife wasn't on the deed. We were told with Hosue #1 that she HAD to be at closing to sign the deed. However, with House #2, they told us that since it was an investment property, she didn't even have to show up at closing. Needless to say we were both a bit miffed, since it takes FOREVER to get all three kiddos dressed and stuf ready to go out with them - not to mention that they were all there now, so they had to endure the closing. I'll know next time. When I got home I realized that the issue was probably how the paperwork was originally filed with HUD. With House #1, I believe my agent at the time specifically told me that my wife had to be put on the deed and the paperwork was filed like that. Not so with House #2. In the future, I think we'll do it like this for now on, so she (and the kiddos) don;t have to go to closing.
Before the closing, I stopped by Lowes and picked up a lockset for each exterior door, so after we closed I could go right to the property and exchange the locks. Like planned, I met my agent at the property right after we closed, and started replacing the locks. The front&back doors each have a deadbolt and knob lock on them, and each of those went in lickity-split. For some odd reason, I had one heckuva time getting the keyed knob on the door to the garage. The bolts seemed to only want to go in halfway. I spent more time on that one lock than the others combined. I finally got one bolt in all the way, but stripped the other trying to get it in. I went ahead and left it like that, since it was the door to the garage anyway. I'll have to replace the bolt first thing when I get over there again. I'll need to buy a lockset for the garage door itself, too.
It's wierd, but when I first walked into the house (after it was ous now), the place looked in worse shape than before. I guess it was my subconscience playing tricks on me. I have more work to do on this property than with House #1, AND I'll be without the services of my wife's parents. They are both working full time once again, and my wife doesn't want to drain them by working on this house, too. That's one of the reasons I'll try to market it "For Sale: As-is".
I had a couple of questions about the HUD-1 I got answered beforehand, so there weren't any surprises on it at closing. The one issue that came up was the fact that my wife wasn't on the deed. We were told with Hosue #1 that she HAD to be at closing to sign the deed. However, with House #2, they told us that since it was an investment property, she didn't even have to show up at closing. Needless to say we were both a bit miffed, since it takes FOREVER to get all three kiddos dressed and stuf ready to go out with them - not to mention that they were all there now, so they had to endure the closing. I'll know next time. When I got home I realized that the issue was probably how the paperwork was originally filed with HUD. With House #1, I believe my agent at the time specifically told me that my wife had to be put on the deed and the paperwork was filed like that. Not so with House #2. In the future, I think we'll do it like this for now on, so she (and the kiddos) don;t have to go to closing.
Before the closing, I stopped by Lowes and picked up a lockset for each exterior door, so after we closed I could go right to the property and exchange the locks. Like planned, I met my agent at the property right after we closed, and started replacing the locks. The front&back doors each have a deadbolt and knob lock on them, and each of those went in lickity-split. For some odd reason, I had one heckuva time getting the keyed knob on the door to the garage. The bolts seemed to only want to go in halfway. I spent more time on that one lock than the others combined. I finally got one bolt in all the way, but stripped the other trying to get it in. I went ahead and left it like that, since it was the door to the garage anyway. I'll have to replace the bolt first thing when I get over there again. I'll need to buy a lockset for the garage door itself, too.
It's wierd, but when I first walked into the house (after it was ous now), the place looked in worse shape than before. I guess it was my subconscience playing tricks on me. I have more work to do on this property than with House #1, AND I'll be without the services of my wife's parents. They are both working full time once again, and my wife doesn't want to drain them by working on this house, too. That's one of the reasons I'll try to market it "For Sale: As-is".
Thursday, October 19, 2006
House #2: Closing Today
Closing
I received word yesterday from my agent that we will indeed be closing today on House #2. She sent the HUD-1 statement to me and I was stunned that the cash I need to bring was about $2,800 less than what I (and my broker on his GFE) figured. After scrutinizing the form, I totally forgot that the seller pays for the property taxes for that portion of the calendar year they owned the property. Duh! So that's where the $2,800 "disappeared". I still accounted for paying the FULL property taxes after I bought it, so this $2,800 bit of news was definately welcome. I emailed my broker to tell him that HUD refunded me 10 of the 15 days I had to pay for an extension, so he only needs to pay me for the 5 days. I haven't heard a peep from him or his crew since that stressful day last week. I just hope this doesn't turn into a debacle of me having to write/call after the closing to get my $125 back from them.
Update: I just got a "peep" out of my broker. He said he won't make the closing, but will meet me next Monday to drop off the check. Hmmmm. I reluctantly agreed (nothing I could really do as he won't be in town until then anyway).
Tenants
In all this running around having to deal with House #2, I've been neglecting the fact that the tenants in House #1 will be leaving soon. Well, I haven't TOTALLY neglected it, but haven't given it enough attention. I got a call from them last night and they said they will be closing on their home tomorrow (Friday). They said they'll use the weekend and the early part of next week to move their stuff out, and would give me a call Sunday or Monday on when we can meet to give me the keys, etc. The lady said she will hire a carpet cleaning company to steam clean the carpets after they move everything out, which I thought was nice.
I know I've said it here more than once, and I'll say it again, these tenants were absolutely wonderful. Besides a couple of HOA complaints, I never received a single complaint from them or about them. The rent was ALWAYS paid ahead of time, and they never experienced any problems with the house (except for a bird trying to build a nest under the eaves, the lady told me).
I told my wife that we should show our appreciation by including a Home Depot or Lowes gift card in the envelope when I send them their security deposit back. I know we made upteen trips to one of those stores when we first moved in our home because we needed picture hanging hardware, tools, etc.
I received word yesterday from my agent that we will indeed be closing today on House #2. She sent the HUD-1 statement to me and I was stunned that the cash I need to bring was about $2,800 less than what I (and my broker on his GFE) figured. After scrutinizing the form, I totally forgot that the seller pays for the property taxes for that portion of the calendar year they owned the property. Duh! So that's where the $2,800 "disappeared". I still accounted for paying the FULL property taxes after I bought it, so this $2,800 bit of news was definately welcome. I emailed my broker to tell him that HUD refunded me 10 of the 15 days I had to pay for an extension, so he only needs to pay me for the 5 days. I haven't heard a peep from him or his crew since that stressful day last week. I just hope this doesn't turn into a debacle of me having to write/call after the closing to get my $125 back from them.
Update: I just got a "peep" out of my broker. He said he won't make the closing, but will meet me next Monday to drop off the check. Hmmmm. I reluctantly agreed (nothing I could really do as he won't be in town until then anyway).
Tenants
In all this running around having to deal with House #2, I've been neglecting the fact that the tenants in House #1 will be leaving soon. Well, I haven't TOTALLY neglected it, but haven't given it enough attention. I got a call from them last night and they said they will be closing on their home tomorrow (Friday). They said they'll use the weekend and the early part of next week to move their stuff out, and would give me a call Sunday or Monday on when we can meet to give me the keys, etc. The lady said she will hire a carpet cleaning company to steam clean the carpets after they move everything out, which I thought was nice.
I know I've said it here more than once, and I'll say it again, these tenants were absolutely wonderful. Besides a couple of HOA complaints, I never received a single complaint from them or about them. The rent was ALWAYS paid ahead of time, and they never experienced any problems with the house (except for a bird trying to build a nest under the eaves, the lady told me).
I told my wife that we should show our appreciation by including a Home Depot or Lowes gift card in the envelope when I send them their security deposit back. I know we made upteen trips to one of those stores when we first moved in our home because we needed picture hanging hardware, tools, etc.
Tuesday, October 17, 2006
Experience
Wow. Even though I already have one HUD closing under my belt, I think I've learned more on this closing than that one - way more. Suffice it to say that having to babysit my broker and his team certainly added to my knowledge. Here are some of the things I've learned:
* I now know how and where to schedule a survey for any future properties I have, if applicable. I've never had to do this for my personal or my other investment property, but knowing I have someone reputable to work with in the future for my survey needs is a definate plus.
* Like the survey company, I never had to deal with the insurance on any of my properties, outside of adding my automobile carrier as the carrier for my personal property when I bought it. I just called the agent for House #1, gave him the particulars, and relayed the info to/from him and my broker and agent. I just got an email from my agent saying she got the latest changes and is forwarding the info to the title co.
* Is there a thing as a good broker? I had the "grass is greener on the other side of the fence" syndrome regarding brokers, and went from the frying pan into the fire with this new one. Holy Guacamole what a headache he caused me. My last broker had me continuously coming to his office to sign this form, drop off a check for this, etc., but at least he had is process in order (for the most part). If I ever find the people who recommended this latest one to me, I'll have some choice words for them. Aye Carumba!!!
* HUD is not for the squimish. Like any other government agency, you have to go by their rules or they won't hesitate to cut the chord. To say they are strict with their process is an understatement. Having been in the military, I was used to the governmental "hurry up and wait" way of doing things, so I wasn't too surprised. I just hate the fact they don't give you very much time to make any corrections (usually 48hr turn-around on paperwork). I'm sure their process has kicked the pants off of a lot of people who didn't have the patience.
There's a lot more I'll write later, but these were probably the biggest. I still need to have a pow-wow with the agent for these properties to see exactly how he can help me with my venture further (i.e., unbrella coverage, entity coverage). I already inquired about umbrella coverage and he said the only way he could provide it is if he covers ALL our assets, including our personal property and vehicles. Hmmmmm.
* I now know how and where to schedule a survey for any future properties I have, if applicable. I've never had to do this for my personal or my other investment property, but knowing I have someone reputable to work with in the future for my survey needs is a definate plus.
* Like the survey company, I never had to deal with the insurance on any of my properties, outside of adding my automobile carrier as the carrier for my personal property when I bought it. I just called the agent for House #1, gave him the particulars, and relayed the info to/from him and my broker and agent. I just got an email from my agent saying she got the latest changes and is forwarding the info to the title co.
* Is there a thing as a good broker? I had the "grass is greener on the other side of the fence" syndrome regarding brokers, and went from the frying pan into the fire with this new one. Holy Guacamole what a headache he caused me. My last broker had me continuously coming to his office to sign this form, drop off a check for this, etc., but at least he had is process in order (for the most part). If I ever find the people who recommended this latest one to me, I'll have some choice words for them. Aye Carumba!!!
* HUD is not for the squimish. Like any other government agency, you have to go by their rules or they won't hesitate to cut the chord. To say they are strict with their process is an understatement. Having been in the military, I was used to the governmental "hurry up and wait" way of doing things, so I wasn't too surprised. I just hate the fact they don't give you very much time to make any corrections (usually 48hr turn-around on paperwork). I'm sure their process has kicked the pants off of a lot of people who didn't have the patience.
There's a lot more I'll write later, but these were probably the biggest. I still need to have a pow-wow with the agent for these properties to see exactly how he can help me with my venture further (i.e., unbrella coverage, entity coverage). I already inquired about umbrella coverage and he said the only way he could provide it is if he covers ALL our assets, including our personal property and vehicles. Hmmmmm.
Monday, October 16, 2006
Testing My Resolve
Okay, I posted ad nauseum about my experiences last week at both work and with REI that had me at my whit's end. Thursday, we released our product on time, so our 4th-line manager said we could have Friday off. Ah reprieve!!! Thank goodness, a silver lining in all this mayhem.
Or, so I thought.
While at work Thursday morning, my wife called all panicky, saying her computer had taken a mind of it's own. Great. I tell her I'll have to fix it when I get home, but to just shut it off. The first thing that comes to my mind: a virus. So, I get home and work on her computer for most of the night. It turns out she had a concoction of several different trojans. I still haven't fully eradicated her system, but at least I have them quarantined. Since she uses the computer to do stuff like loggingin into our bank and CC companies, I had her use my computer to change the passwords immediately.
Next, we woke up Fri morning to the sound of our house alarm telling us the battery was dying. So, I run to Radio Shack first thing to pick one up and install it. Another fire qualmed.
Then one of our smoke alarm batteries decides that it won't be overshadowed and dies, too. Fresh out of 9v batteries, so I make another run to the store.
Saturday morning I wake up and go out to the garage to find a screwdriver to open my daughter's Leap Frog game (to - what else - change the dead bateries. anyone else see a conspiracy here?). I just happened to look down at my car's tires and notice that the left-rear one is completely flat. What the $#@%@#!!! Luckily, I have a air compressor that hooks up to the car's cigarette lighter. I get it pumped up and tell my wife the bad news. Another trip to the store - this time to get my flat fixed. The nearest place is a Walmart, so I go there. Waiting time? THREE hours. Ugh. should called first. My wife says to come home and go the next day first thing, so it won;t take as long.
Sunday, I go to Walmart and wait for the assistant to help me. After taking all my info (again), he tells me it'll be a 4-hour wait. You gotta be kiddin me??? So, I call my wife and have her pick me up.
One day I tell you - one day.
Now back to REI ...
I called my agent last Fri asking her if it would be possible to close in the late afternoon on Thu (or Fri) rather than on Wed, but got her voicemail. She called me back at 8am today (Monday) telling me she was with a group of California investors all-day Fri and Sat. Great - now they're coming in groups. She says it should be alright if we close those dates/times, but she won't know anything until tomorrow at the earliest.
I also called my insurance agent last Fri afternoon to discuss coverage on House #2. I got the policy in the mail last week, but they had the start date of Sep 30th. I leave him a VM and say that I haven't even closed on the house yet. His assistant emails me later that afternoon and says she'll put an order to get the policy dats changed.
I guess I should be lucky I get 6-7 hours at night to sleep. Shouldn't I??? ;-P
Or, so I thought.
While at work Thursday morning, my wife called all panicky, saying her computer had taken a mind of it's own. Great. I tell her I'll have to fix it when I get home, but to just shut it off. The first thing that comes to my mind: a virus. So, I get home and work on her computer for most of the night. It turns out she had a concoction of several different trojans. I still haven't fully eradicated her system, but at least I have them quarantined. Since she uses the computer to do stuff like loggingin into our bank and CC companies, I had her use my computer to change the passwords immediately.
Next, we woke up Fri morning to the sound of our house alarm telling us the battery was dying. So, I run to Radio Shack first thing to pick one up and install it. Another fire qualmed.
Then one of our smoke alarm batteries decides that it won't be overshadowed and dies, too. Fresh out of 9v batteries, so I make another run to the store.
Saturday morning I wake up and go out to the garage to find a screwdriver to open my daughter's Leap Frog game (to - what else - change the dead bateries. anyone else see a conspiracy here?). I just happened to look down at my car's tires and notice that the left-rear one is completely flat. What the $#@%@#!!! Luckily, I have a air compressor that hooks up to the car's cigarette lighter. I get it pumped up and tell my wife the bad news. Another trip to the store - this time to get my flat fixed. The nearest place is a Walmart, so I go there. Waiting time? THREE hours. Ugh. should called first. My wife says to come home and go the next day first thing, so it won;t take as long.
Sunday, I go to Walmart and wait for the assistant to help me. After taking all my info (again), he tells me it'll be a 4-hour wait. You gotta be kiddin me??? So, I call my wife and have her pick me up.
One day I tell you - one day.
Now back to REI ...
I called my agent last Fri asking her if it would be possible to close in the late afternoon on Thu (or Fri) rather than on Wed, but got her voicemail. She called me back at 8am today (Monday) telling me she was with a group of California investors all-day Fri and Sat. Great - now they're coming in groups. She says it should be alright if we close those dates/times, but she won't know anything until tomorrow at the earliest.
I also called my insurance agent last Fri afternoon to discuss coverage on House #2. I got the policy in the mail last week, but they had the start date of Sep 30th. I leave him a VM and say that I haven't even closed on the house yet. His assistant emails me later that afternoon and says she'll put an order to get the policy dats changed.
I guess I should be lucky I get 6-7 hours at night to sleep. Shouldn't I??? ;-P
Thursday, October 12, 2006
Insane
What a L-O-N-G day yesterday was. Not only long, but just about every minute until I left work was stressful. It was bad enough having to babysit the broker, loan officer, and underwriter to get this whole fiasco corrected, but I was under constant pressure at work to get a release out the door. Matter of fact, at 4pm, the project manager stops by my office to check on how the builds were going. I told him they have to wait for 30 mins or I'll lose my house. You should have seen his expression. But it was true.
I sent email after email, and made call after call yesterday to get things ironed out with House #2. My wife and I were adiment we would get reimbursed in full for filing an extension, or not do the deal at all. It turns out the loan officer could not be reached. Finally, I had to have my wife start dealing with the matter as things were coming to a head at work. At about 4pm, I FINALLY got an email from the loan officer saying he would reimburse us the charge in FULL. So, I call my agent and tell her to meet me at my bank to get the check. I then run out the door (literally) to my car, hop to the bank (which thankfully is just a mile down the road), get a cashier's check and meet my agent. I got back to work about 4:25m to continue working. I'm lucky I happened onto one of those days the lobby at the bank stayed open past 4pm, or I'd of had to go thru the drive-thru.
I won't detail all the calls and emails as they were too much and everything was a blur. The one thing that added to my anger was the fact the title company hadn't received the survey. Back on Monday, th eunderwriter said that whole deal was taken care of. Looks like another dropped ball. Luckily, I keep a folder in my car of all the important paperwork for the current deal I'm doing, so I can have it with me for such emergencies. One of the things I included was a copy of the survey. So, when I met my agent to give her the check, I also gave her the survey copy.
It is now almost noon on Thursday. The release got out the door last night at 5:30p (I got into work at 6:30am), and it looks like the title company got their $#@%#$ paperwork (or, at least, I haven't heard the contrary yet).
If I didn't have kids, I would pick me up a bottle of Jack Daniels this weekend and slowly sip it until its gone on Sunday - not doing a damned thing in the process (except maybe relieve myself). What a nightmare week this has been.
I sent email after email, and made call after call yesterday to get things ironed out with House #2. My wife and I were adiment we would get reimbursed in full for filing an extension, or not do the deal at all. It turns out the loan officer could not be reached. Finally, I had to have my wife start dealing with the matter as things were coming to a head at work. At about 4pm, I FINALLY got an email from the loan officer saying he would reimburse us the charge in FULL. So, I call my agent and tell her to meet me at my bank to get the check. I then run out the door (literally) to my car, hop to the bank (which thankfully is just a mile down the road), get a cashier's check and meet my agent. I got back to work about 4:25m to continue working. I'm lucky I happened onto one of those days the lobby at the bank stayed open past 4pm, or I'd of had to go thru the drive-thru.
I won't detail all the calls and emails as they were too much and everything was a blur. The one thing that added to my anger was the fact the title company hadn't received the survey. Back on Monday, th eunderwriter said that whole deal was taken care of. Looks like another dropped ball. Luckily, I keep a folder in my car of all the important paperwork for the current deal I'm doing, so I can have it with me for such emergencies. One of the things I included was a copy of the survey. So, when I met my agent to give her the check, I also gave her the survey copy.
It is now almost noon on Thursday. The release got out the door last night at 5:30p (I got into work at 6:30am), and it looks like the title company got their $#@%#$ paperwork (or, at least, I haven't heard the contrary yet).
If I didn't have kids, I would pick me up a bottle of Jack Daniels this weekend and slowly sip it until its gone on Sunday - not doing a damned thing in the process (except maybe relieve myself). What a nightmare week this has been.
Wednesday, October 11, 2006
A Comedy of Errors
I swear one day in the future I'll look back on this whole fiasco trying to close House #2 and laugh, but for now it has added several more gray hairs and increased my blood pressure a good 10 pts, I'm sure. And, it's anything but laughable.
Geez. Where do I begin? So much has happened in the span of 24hrs, I'm sure I'll have things out of order and just plain missing, but here goes ...
* Yesterday morning. Got an email from my agent saying we have to file an extension (she had just talked to the title company beforehand). Docs haven't arrived nor has the wire, which complicates the matter more. As it is, I need to file an extension, which comprises of sending the title company a check for $375 before the EOB Wed (so they can get it Thu).
* I immediately try to contact my broker, loan officer, and underwriter via email and phone (just got VM). My agent informs me she is doing the same.
* Noon and still no word from anyone. I decide to make another round of calls and emails. Finally, about 1pm I get an email from my loan officer saying he is working on seeing how I can get reimbursed the fee. Shortly afterward, my broker emails me too with the same info.
* I get off work and go home. Still nothing. My agent calls me back at around 5pm, telling me she talked to the loan officer and this is the deal ... The lender won't pay for the fee (of course), so that means someone else has to pay. Get this ... the loan officer tells my agent he'll put in a portion, she can put in a portion, and have me put in a portion for the fee.
I went ballistic (in my head).
At almost the same time, she says that I am in no way, shape, or form responsible for this mishap. She exhonerates herself, too, by saying she worked diligently with the underwriter to see things were done right. She was assured by the underwriter that everything would be taken care of. She said that this loan officer should have IMMEDIATELY stepped up to the bat and realized it was his team that dropped the ball and he would pay out of his own pocket for the mishap without hesitation, to which I agreed wholeheartedly.
I was absolutely stunned after the conversation. I even told my agent that when she, I, and the loan officer were at the property during the inspection that she explicitly told him that he would have to get everything to HUD's title company a week before closing. And I distinctly remembered him answering that he would tell his underwriter.
This just has me absolutely fuming that (1) he does not take full responsibility for the screw-up, and, probably moreso, (2) that he expects ME to pay even a penny for the result of the his team's screw-up.
Well, I got into work today and noticed that he sent an email late last night saying basically the same thing he told my agent, that each of us should pay a 1/3 of the fee. He also left a VM on my cell phone when I was in a meeting to which he said that it's only $125 and will be a lot easier to lose than the $1,000 EMD I already have in the deal. WTF?!?!?!?! I immediately sent him a VERY stern email, letting him have it (in a professional way). I told him if he didn't give me written assurance by the EOB today that he would reimburse me before or at closing in full for this fee, I would cancel the deal and seek restitution for monetary damages inflicted as a result of his and/or his team's negligence.
Unfortunately, all this had to happen right when our project is scheduled to announce a major release, so I'm stuck in meetings most of the day this week and have very little lee-way in running errands.
I still haven't heard anything as of now (almost 11am). If I don't hear anything shortly, I'll make another round of emails/calls to everyone.
Geez. Where do I begin? So much has happened in the span of 24hrs, I'm sure I'll have things out of order and just plain missing, but here goes ...
* Yesterday morning. Got an email from my agent saying we have to file an extension (she had just talked to the title company beforehand). Docs haven't arrived nor has the wire, which complicates the matter more. As it is, I need to file an extension, which comprises of sending the title company a check for $375 before the EOB Wed (so they can get it Thu).
* I immediately try to contact my broker, loan officer, and underwriter via email and phone (just got VM). My agent informs me she is doing the same.
* Noon and still no word from anyone. I decide to make another round of calls and emails. Finally, about 1pm I get an email from my loan officer saying he is working on seeing how I can get reimbursed the fee. Shortly afterward, my broker emails me too with the same info.
* I get off work and go home. Still nothing. My agent calls me back at around 5pm, telling me she talked to the loan officer and this is the deal ... The lender won't pay for the fee (of course), so that means someone else has to pay. Get this ... the loan officer tells my agent he'll put in a portion, she can put in a portion, and have me put in a portion for the fee.
I went ballistic (in my head).
At almost the same time, she says that I am in no way, shape, or form responsible for this mishap. She exhonerates herself, too, by saying she worked diligently with the underwriter to see things were done right. She was assured by the underwriter that everything would be taken care of. She said that this loan officer should have IMMEDIATELY stepped up to the bat and realized it was his team that dropped the ball and he would pay out of his own pocket for the mishap without hesitation, to which I agreed wholeheartedly.
I was absolutely stunned after the conversation. I even told my agent that when she, I, and the loan officer were at the property during the inspection that she explicitly told him that he would have to get everything to HUD's title company a week before closing. And I distinctly remembered him answering that he would tell his underwriter.
This just has me absolutely fuming that (1) he does not take full responsibility for the screw-up, and, probably moreso, (2) that he expects ME to pay even a penny for the result of the his team's screw-up.
Well, I got into work today and noticed that he sent an email late last night saying basically the same thing he told my agent, that each of us should pay a 1/3 of the fee. He also left a VM on my cell phone when I was in a meeting to which he said that it's only $125 and will be a lot easier to lose than the $1,000 EMD I already have in the deal. WTF?!?!?!?! I immediately sent him a VERY stern email, letting him have it (in a professional way). I told him if he didn't give me written assurance by the EOB today that he would reimburse me before or at closing in full for this fee, I would cancel the deal and seek restitution for monetary damages inflicted as a result of his and/or his team's negligence.
Unfortunately, all this had to happen right when our project is scheduled to announce a major release, so I'm stuck in meetings most of the day this week and have very little lee-way in running errands.
I still haven't heard anything as of now (almost 11am). If I don't hear anything shortly, I'll make another round of emails/calls to everyone.
Tuesday, October 10, 2006
House #2: For Sale
somehow, I managed to find a few minutes over the past week to get a "For Sale" flyer done for House #2 as well. You can view it here. Like always, let me know what you think.
Monday, October 09, 2006
House #1: For Sale
I finally put the finishing touches on the ad I'll post to CraigsList.com's "For Sale" section for House #1. You can view the "flyer" here. Let me know what you think!
Murphy's Law
I hadn't heard from anyone regarding House #2 for a while now, and with the 45 day mark coming up very soon, I thought I'd contact my agent to see how things are going. She replies that the closing is on tap for this Friday. THIS FRIDAY!!! I hadn't realized it was so soon. She says she'll contact the title company to see if everything is set for Friday. Then Murphy rears his ugly head. Title company is closed for Columbus Day. She then says she'll call my underwriter to see if the lender has thier stuff ready for Friday. Murphy again? Yep. She says the underwriter told her the lender emailed the docs last Thursday. Good? No, bad. HUD does NOT accept email attachmenets - they must be snail-mailed to them. Great. She then says that with this news, we can't close Friday and I'll have to file an extension. Oh, BTW, that'll cost another $375. WHAT?!?!?! Oh, yeah - this whole conversation is being done via email because I am in a meeting all morning due to our project releasing their milestone build later this week. Can you say TERRIFIC?!?! I wait a few moments, and gather my thoughts. Then I write my agent back. I tell her to just wait until the title company opens in the morning and try to get this resolved (she wanted me to get her a cashier's check today for the extension). If it turns out I have to pay the $375, I'll definately be on a war path as it was something entirely out of my hands. After a while she responds that theunderwriter told her she'll drop off the docs in person, if need be (I told her to just overnight them in an earlier email). My agent said IF they accept the docs tomorrow, we still aren't out of the water as the funds needed to be wired today, too.
Of course, all this COULDN'T have happened a few weeks back when I wasn't swamped at work.
Update: After trading several emails with the underwriter, I *think* HUD's title company will have all their paperwork tomorrow morning. This doesn't mean they'll accept it in time for a Friday close, but at least I can hope. Another stickler is the fact that the underwriter says lenders don't typically wire funds a week prior to closing, so it doesn't sound promising. She said she and the lender will get with HUD's title company first thing tomorrow to try and work out a solution. Seems I mentioned recently here that I'd still have a bumby road ahead in this deal.
Update2: Well, it looks like I will have to file an extension as my agent just informed me the title company would not accept the docs and wire today for a Friday close. She said they still require 3-4 days for HUD to approve everything. So, now I'm trying to track down my broker and underwriter to see how/if I can get reimbursed for something that was out of my control. I discussed the possibility of having to pay the fee to my wife last night, and she was not happy at all. She even wanted to back out of the deal altogether if we ended up paying and not getting reimbursed - even if it meant losing the EMD. Ah stress - dontcha just love it?
Of course, all this COULDN'T have happened a few weeks back when I wasn't swamped at work.
Update: After trading several emails with the underwriter, I *think* HUD's title company will have all their paperwork tomorrow morning. This doesn't mean they'll accept it in time for a Friday close, but at least I can hope. Another stickler is the fact that the underwriter says lenders don't typically wire funds a week prior to closing, so it doesn't sound promising. She said she and the lender will get with HUD's title company first thing tomorrow to try and work out a solution. Seems I mentioned recently here that I'd still have a bumby road ahead in this deal.
Update2: Well, it looks like I will have to file an extension as my agent just informed me the title company would not accept the docs and wire today for a Friday close. She said they still require 3-4 days for HUD to approve everything. So, now I'm trying to track down my broker and underwriter to see how/if I can get reimbursed for something that was out of my control. I discussed the possibility of having to pay the fee to my wife last night, and she was not happy at all. She even wanted to back out of the deal altogether if we ended up paying and not getting reimbursed - even if it meant losing the EMD. Ah stress - dontcha just love it?
Thursday, October 05, 2006
Cash vs. Cash Flow
I guess this is the big debate regarding RE investing. I'm actually weighing the pros & cons of both with both House #1 and House #2. When doing dome calculations, in one scenario I figured I could CF positive $250/mo+ for the life of a loan. Of course, the immediate pro would be an (almost) predictable amount of CF each month for a very long time. Another benefit is the actual net profit made. For example, a $30,000 loan amortized over 30yrs with an 11% rate would put $286 in my pocket every month. I SERIOUSLY doubt it would go the entire 30yrs, but if it did, I would stand to make: $286 x 12 x 30 = $102,960. The downsides, though, are plenty ... First, the $30,000 is frozen. I can't touch it (outside of some creative techniques). Next, I run the risk the holder of the note defaults, and I have to eat it. Also, while my rate should always outpace inflation, it will be reduced by it every year. IOW, if I charge 11% and inflation runs an average of 3%, I am theoretically only making 8% on my money. Of course, there are 100's of other variables to consider as well. For example, the money is actually equity tied into a property and not just cash I have lying around. If I decided to sell off the property and pull all the cash out, I'd actually only have about $20,000 in my pocket - not the $30,000 in "phantom" cash (i.e., equity position). However, I could always sell off the property and use the $20,000 in some other investment that would generate returns exceeding 11%/yr. Decision, decisions, decisions.
If anyone hasn't guessed what I'm thinking of doing it's partial seller financing. The buyer would buy the house, put down some money, pay off my loan with a new first, and I'd create a new second note for the balance. Just another option I'm thinking about.
I'm actually trying to get hold of a local RE attorney who specializes in creative financing techniques. He was on vacation a couple weeks back, and was supposed to be back now. I hope to get an idea of what options I have available for me and which one would be the best fit for my situation.
If anyone hasn't guessed what I'm thinking of doing it's partial seller financing. The buyer would buy the house, put down some money, pay off my loan with a new first, and I'd create a new second note for the balance. Just another option I'm thinking about.
I'm actually trying to get hold of a local RE attorney who specializes in creative financing techniques. He was on vacation a couple weeks back, and was supposed to be back now. I hope to get an idea of what options I have available for me and which one would be the best fit for my situation.
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