Posted by js-Indianapolis on August 19, 2003 at 20:40:41:
Why pass on that much $$? Well, for starters, if there’s that much profit, there’s that much more room for big issues. I’m working with one right now, the seller knows someone is going to make $75K off it (his figure). Guess what? I’ll get what I can, and let someone else take the rest.
I’m not about to spend 6 months in this pile of sticks they once called a house to see if my first rehab will be a success. The roof is caving in, and it has been vacant for 8 years. Can you say mold? Everything needs to be replaced, and mold needs to be neutralized and sealed. I’ve got the contractors to do it too. DO I want to spend my days on the phone with a contractor, and asking him why he’s not done with something, as there are other contractors in line waiting to start something else? Then call other contractors and tell them to wait. Then have them tell me I get to be put in the back of their 3 week backup again. Every work with contractors? How about the warranty on that mold removal? Not transferable to knew owners. In fact, many warranties on things aren’t transferable as they are LIFETIME (non-transferable). What happens if the place burns tot the ground the night after you do the finishing work? 6 months work burnt to the ground? Can’t happen? I sold a house to a guy who had it happen. His idea was not to get his investment plus $0, after 6 months of rehabbing.
OK, I’m spent.
There are plenty of reasons to get paid now, as opposed to hang around for another 6 months to see what might be. You wouldn’t be the first person to think you were going to make $60K, and end up upside down. Termites? Unknown structural problems? Unknown city code violations? I’m in no position to pay for something I or the inspector overlooked, or contractors mistakes and time delays. Nor do I have any tolerance for my own incompetence. Different strokes for different folks. Some are willing to work it til the end, and squeeze every last dime in 6 months. Others are willing to take 10K now, and do one a month like that, for 6 months. Same $60K.
OH, sorry, I don?t really think you?re nuts. Just choose to do what you do though, and see that doing it another way isn?t wrong, it?s just another way.