Re: Unless it’s huge, let it go! - Posted by TRandle
Posted by TRandle on February 12, 2000 at 19:00:55:
I’ve never posted all the details. The murder took place over 2 years before I bought the place. A realtor friend of my wife told us she was getting ready to evict the current tenants. We went back and forth several times changing the deal with the sellers (with their agreement each time).
The neighborhood is great, appreciating, and selling quickly. The house needed cosmetics, but being a newbie and having done 3 deals in the prior 3 months, I was getting a little coqky. The house’s ARV was at least 150k and we eventually settled on a 90 day L/O at $115k with $3,500 in prepaid rent (they initially wanted a 4k earnest money deposit). I was positive I could sell it and we did the “prepaid MLS” thing.
All I knew about the murder was that a female tenant who had been living there over a year with another female tenant and a male tenant, walked downstairs one morning and shot the male tenant while he was eating his breakfast. We put something to the effect of “tenant died on premises 6/97” on the disclosure papers. We couldn’t move it after many lookers and began doing repairs. Brilliant, huh?
I won’t go into all the details, but suffice it to say that within 30 days of closing, we had no buyers, no T/Ber’s, no renters, and had spent probably 10k including the $3,500 up front on a house we didn’t even own. Emotions and concern were high needless to say.
We did close on a 90% LTV NOO investor loan and rolled the $3,500 (changed the definition again) into the note and other closing costs. So, I don’t know all the exact numbers, but we were in for a loan of about 110k and 16k out of pocket. We put a 2nd on the property 3 days after closing based on an appraisal of 148k and pulled out 23k. We did finally find a T/B with a small down and a note for the rest of the total 5% option consideration prior to making the first payment. So, we pulled about 7k profit out and have someone else making the payments. So far, it’s worked out okay, but not one of those “let me post the details of this deal”.