Buying First Property - I'm Very Frustrated!
I am trying to buy my first investment property. I started out looking at bank foreclosures and rehabs that I could repair and then rent. While looking I had what I think is a great deal on 3 duplexes come my way through a friends relative. The price is a stretch for me (coming up with down and closing costs)- but it is a good deal and I'm going for it.
I'm am supposed to be closing on Wednesday (7/28), but my mortgage broker called this evening and there are problems.
-first is seasoning on my down payment money. It was sort of given to me (long personal story, it wasn't really a gift but I won't explain now) by my mom. It has been in the account for more then 60 days but the lender is still wanting to know where the money came from and is not accepting that it came from my mom. My broker is confident that we can get around this before Wednesday.
-The second and bigger problem is the appraisal. I live in a small town outside of Fort Worth, TX. When the appraisal was done they tried to comp. with other duplexes. But in the past 12 months there has been only 1 other duplex bought/sold in this town. The appraiser used comps from other neighboring towns. The lender is saying that they can't accept the appraisal because the comps aren't local. My broker says he has never seen a lender not approve an appraisal before and is going t make some calls to find out what to do next tomorrow.
We are supposed to close on Wednesday - the seller is not available on Thur or Fri to close and I won't to do it before the end of the month to save on prepaid. AHHHHHHHH!!!:-x
Is this frustration a normal part of getting ready for a closing - or do these challenges sound unique to you experienced investors? :-?
Any comments or advice?
relax , enjoy it . it's part of the "hunt" you have to love it. remember if it don't happen there's a better deal waiting for you!..........kenmax
a good day is when only two or three things go wrong.. Your having a good day
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"relax , enjoy it . it's part of the "hunt" you have to love it. remember if it don't happen there's a better deal waiting for you!.........."
Very true words. Learn to love the challenge or you will go crazy.
Dumdido,
Glad to meet you.
The after the closing story.
I just read in the newspaper that Donald Trump is behind and has not made a $53 million dollar interest payment on one of his loans.
I was thinking I should have those kind of problems, it is all relative to how you think.
John $Cash$ Locke
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This stuff's just par for the course.
You'll look back on this in a few months and realize it was really no big deal. Because, by then, you'll have moved on from dealing with brokers to dealing with contractors and tenants. That's when the real headaches begin. Only kidding.
To put this in perspective, I had an open house this weekend for a condo I just rehabbed. A few hours before the showing, we had torential downpours. The minute the first couple walked through the door, the roof started leaking. My realtor scrambled, placing pots and pans on the floor under the drips. Overall, the open house was a disaster. But I couldn't help but laugh (after I screamed and yelled, of course).
In the end, I fixed the leaks (fingers crossed) and we're holding another open house this weekend.
So like I said, it's all just par for the course.
Good luck.
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Just out of curiosity, who paid for the appraisal, and who hired the appraiser? It seems to me that if the bank hired their appraiser, and passed the charge on to you (i.e. appraisal fee), that they have to accept the appraisal, or, at their own expense, hire a new appraiser to do a "better" job. Have you spoken with the bank/underwriter?
My loan broker arranged for the appraisal, but like you said I am billed for it at closing. I broker told me that the lender now wants to send out another person (at there expense) to do a second appraisal. But that will mean that we do not close until next month.
Is there any way you could ask or induce them to speed up the appraisal? even paying for half of it? It might be cheaper than another months holding costs....
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