my view - Posted by Laure
Posted by Laure on March 11, 2000 at 24:33:00:
I rehab too, and to dump 20k into a house takes a lot of time and guts. I just L/0 a house that I rehabbed for 20k. It is scary that’s for sure. I thought the same things… if they don’t buy, I have to paint the whole house again, the carpet won’t be “new” anymore, etc. I don’t want to wait a year to get my profit, so I am writing leases for 6 months now.
Look, your buyers ALMOST got financed the first time. I would bet that you are right, and that in a few more months, they will fly through financing. I would NOT pay a realtor to “try” to sell your house. If the neighborhood isn’t that great, then the house will just sit empty anyway adding up interest expenses and utility costs.
Contact the lender and find out what steps the buyers must take to be loanable in the near future. Ask if they allow owner carry-back financing. You might be able to carry back a second mortgage for 5% and get the loan through. And afterall, 5% carryback is still
less than you would pay a realtor. My best friend was turned down by three lenders this week. Today I walked her over to my lender, and she was approved in 45 minutes for a 8.5%, 30 year mortgage with 3% down !!! She wasn’t buying a house from me, but I still took her over there… that’s just the kind of friend I am…LOL.
As for the repairs, if you decide to L/O the property, spend the money on Bronchick’s L/O course. His forms state that the buyer is responsible for ALL REPAIRS. I usually write in that I will repair for the first 30 days, in case we missed something in the rehab.
I also get at least 3k down. I don’t know if your buyers have this much down payment, but it covers your fixing if they don’t get financed and mess up the house some.
Good luck, and let me know what you decide, and how it turns out. It’s a tough decision.