Jumping All In
So here’s my first purchase experience so far.
On the house.
PP: 40K
Rehab Estimated:40k
ARV: 135k
FMR:1200
Wrote up a contract and got it signed with 30 day closing. Started working with lender and title company getting everything ready for closing. 2 weeks after signing the seller passes away. This has left me to work with the sellers only daughter who is just a real peach!
I’m confident I’ll prevail without any major added expenses but just a fun way to jump right into real estate
Lol! Did the initial contract become unexecutable? At least the daughter is not trying to raise the price....Hopefully....
@Sean Winchell, oh no the daughter is trying to raise the price! I’ve had to get some legal opinions on it so I’m not wasting money but the general consensus is the same. State law says the contract is binging it’s just a matter of getting the executor of the estate (the daughter) to sign the documents at closing. Once probate has been opened up I’ll have to petition the courts to get a court order to fulfill the original contract.
I’m not sure how common these situations are but I figured if I’m having to go through it and learn the process of this situation maybe I can share it and potentially help others
My Saga continues…. I figured I would update. Not much has changed. We have gone to court twice now.
The first was probate to have her appointed to the estate and so we could file our intent to honor the contract.
The second got turned into a hearing to set a hearing date (ridiculous I know).
So currently we are set for May 29th where we should have a hearing and an answer.
Trying to step back into the real estate game has not been everything I hoped it would be yet. I had a rental about 10 years ago that I eventually sold because I didn’t understand the game. Lessons learned education on going I decided to get back into it with a business mind set. So here we are with this on my first. I keep going over how many other potential properties I could have purchased and had actively bringing cash flow at this point if I’d have let this one go and moved on. Really makes me a bit sick.
The numbers continue to make sense on this it’s just now a matter of how long do I allow the litigation to draw out (still acquiring those attorney fees) before just moving on.
I’ll be over here in LIMBO until May 29th if anybody wants input on contracts that end up in probate before closing
Quote from @Andrew Terry:
My Saga continues…. I figured I would update. Not much has changed. We have gone to court twice now.
The first was probate to have her appointed to the estate and so we could file our intent to honor the contract.
The second got turned into a hearing to set a hearing date (ridiculous I know).
So currently we are set for May 29th where we should have a hearing and an answer.Trying to step back into the real estate game has not been everything I hoped it would be yet. I had a rental about 10 years ago that I eventually sold because I didn’t understand the game. Lessons learned education on going I decided to get back into it with a business mind set. So here we are with this on my first. I keep going over how many other potential properties I could have purchased and had actively bringing cash flow at this point if I’d have let this one go and moved on. Really makes me a bit sick.
The numbers continue to make sense on this it’s just now a matter of how long do I allow the litigation to draw out (still acquiring those attorney fees) before just moving on.
I’ll be over here in LIMBO until May 29th if anybody wants input on contracts that end up in probate before closing
Man sounds like a fun deal! We bought a home via probate a few months ago, be prepared to get scrutinized on the price by the judge. In our case we had to pay approximately 90% of what the appraised value was. So you may have to raise your price a bit depending on how things go. May be different in your situation but that's what we dealt with. Good Luck!
@Stephen Blake, thanks for the heads up! Hopefully I’ll have answers at the end of this month. I feel I am prepared to discuss the contract fairly. But at the end of the day if it’s fiscally better to let it go I can walk away knowing I made the right decision if need be.
Quote from @Stephen Blake:
Quote from @Andrew Terry:
My Saga continues…. I figured I would update. Not much has changed. We have gone to court twice now.
The first was probate to have her appointed to the estate and so we could file our intent to honor the contract.
The second got turned into a hearing to set a hearing date (ridiculous I know).
So currently we are set for May 29th where we should have a hearing and an answer.Trying to step back into the real estate game has not been everything I hoped it would be yet. I had a rental about 10 years ago that I eventually sold because I didn’t understand the game. Lessons learned education on going I decided to get back into it with a business mind set. So here we are with this on my first. I keep going over how many other potential properties I could have purchased and had actively bringing cash flow at this point if I’d have let this one go and moved on. Really makes me a bit sick.
The numbers continue to make sense on this it’s just now a matter of how long do I allow the litigation to draw out (still acquiring those attorney fees) before just moving on.
I’ll be over here in LIMBO until May 29th if anybody wants input on contracts that end up in probate before closingMan sounds like a fun deal! We bought a home via probate a few months ago, be prepared to get scrutinized on the price by the judge. In our case we had to pay approximately 90% of what the appraised value was. So you may have to raise your price a bit depending on how things go. May be different in your situation but that's what we dealt with. Good Luck!
Ouch. If that was a distressed deal no way I'd agree to that. Hopefully the OP doesn't experience that scenario.
@Andrew Terry I would cut-bait after the 29th if it doesn't go your way.
Quote from @Andrew Terry:
@Stephen Blake, thanks for the heads up! Hopefully I’ll have answers at the end of this month. I feel I am prepared to discuss the contract fairly. But at the end of the day if it’s fiscally better to let it go I can walk away knowing I made the right decision if need be.
Yeah I hear ya. Good luck man, hopefully the judge is able to work with you and you can get the deal!
Quote from @Jaron Walling:
Quote from @Stephen Blake:
Quote from @Andrew Terry:
My Saga continues…. I figured I would update. Not much has changed. We have gone to court twice now.
The first was probate to have her appointed to the estate and so we could file our intent to honor the contract.
The second got turned into a hearing to set a hearing date (ridiculous I know).
So currently we are set for May 29th where we should have a hearing and an answer.Trying to step back into the real estate game has not been everything I hoped it would be yet. I had a rental about 10 years ago that I eventually sold because I didn’t understand the game. Lessons learned education on going I decided to get back into it with a business mind set. So here we are with this on my first. I keep going over how many other potential properties I could have purchased and had actively bringing cash flow at this point if I’d have let this one go and moved on. Really makes me a bit sick.
The numbers continue to make sense on this it’s just now a matter of how long do I allow the litigation to draw out (still acquiring those attorney fees) before just moving on.
I’ll be over here in LIMBO until May 29th if anybody wants input on contracts that end up in probate before closingMan sounds like a fun deal! We bought a home via probate a few months ago, be prepared to get scrutinized on the price by the judge. In our case we had to pay approximately 90% of what the appraised value was. So you may have to raise your price a bit depending on how things go. May be different in your situation but that's what we dealt with. Good Luck!
Ouch. If that was a distressed deal no way I'd agree to that. Hopefully the OP doesn't experience that scenario.
@Andrew Terry I would cut-bait after the 29th if it doesn't go your way.
We we're able to negotiate with the seller (OG owners daughter) to cover all the closing costs to essentially get the purchase price to where the judge wanted, but bring our out of pocket purchase closer to what we we're asking for. Goal was to buy and hold this one.
After checking comps again, looked like there was enough meat there to flip it and make a few bucks so we're trying to sell it right now, but we'll see. If we can't get around the price we want we'll hold it!
Statute seems pretty clear on our situation however I know in the court process things can change. It is a distressed property and would give plenty left after rehab to turn a profit. I plan to cut bait if litigation continues after the 29th. I’d rather be finding properties I can actually work with rather than sit on my hands waiting on court dates for unknown possibilities
Quote from @Andrew Terry:
Statute seems pretty clear on our situation however I know in the court process things can change. It is a distressed property and would give plenty left after rehab to turn a profit. I plan to cut bait if litigation continues after the 29th. I’d rather be finding properties I can actually work with rather than sit on my hands waiting on court dates for unknown possibilities
Fair enough don’t blame ya. Good luck!