Dumb deal Gone Good

I put a house under contract that I shouldn't have. I also used the wrong contract. It was my first home under contract that I wasn't planning in buying myself. I messed up. The seller involved a lawyer because her husband made her, and I had 2 people now that didn't really trust me. I asked for a lot of advice on this one, and most told me to walk away. I had an exit, I could have, and some say, should have, exited.

The property is too high for cash buyers and needs too much work for retail buyers. I really hit it off with the seller originally. Once she involved a lawyer, it got weird. She wasn't answering my calls anymore, but would through email. And everything was short, no communication really. It sort of made me a little sick. I kept thinking, this sucks, I can't have my first deal tarnish my name. I was getting advice from a my rei club. They were the ones who said "get it under contract, the details don't really matter right now." Well, the details were going to bite me in the butt! They advised me to possibly play hardball with her. And then, when the contract was close to an end, to pass it off to one of their listing agent friends. I didn't do either.

Originally the seller was extremely against a rent to own or lease option. I didn't really know exactly how they worked, but the local coaches told me to ask. She said NO. I brought it up again to her and she said NO. So I knew not to go back to that subject.

On the day our contract expired I left her a message asking if we could meet at a certain time on the phone. She texted back, did you get a buyer or a loan or are you just going to walk away? I texted back, No, I want to keep my word and buy your house. My phone rang, it was her. I told her that my bank won't give me a loan until I have renters in place for 6 months. Then asked her how long she can keep making double house payments. She admitted she was starting to fall behind and allowed me to get renters in there to take over her payments.

I am having an open house tomorrow, and priced it $150/month too high, in my opinion. I still have 10 people coming to look at it. That $150/month is my profit until I can get a loan on it, then it will cash flow $400. I'm so proud that I made it work!

I have always had an incredible, cant stop me, driving force behind me. But I have never had the people behind me like the ones on this site. The confidence behind me from complete strangers that I hope to one day meet. I have never been a part of something so big.... until now!!! I am like Shaggy and Scooby running right now. My legs are going a mile a minute but I haven't been going anywhere. But once my shoes take grip.... I'm peelin" out!