RE investment story of the week



I think you know we do residential real estate and investments properties.  The past couple of weeks have been a wild ride, if you think you have a problem getting financing for just a home, try getting a loan for an investment property.  Generally, this will cost you more in interest rates because it is an investment. And let me tell you it is tough out there, even if you have excellent credit and a great job you will have a difficult time getting terms that are desirable for you!

For example, a builder has gotten caught with too much inventory that hasn't sold, the homes are almost complete and the construction loans need to be refinanced.  But if we can sell them asap then a new loan doesn't have to be taken, but if you lease instead of sell right now, which is another option, then you are going to have to re-fi at least one.  We have had the properties on the MLS since November with some activity but with a lot of construction snafu's and delays in finishing, originally they were suppose to be finished in Dec. It is now May and they are just now getting done.  WOW! that's a wasting money from the investor side.

The properties are beautiful and are in a very desirable part of town.  We lost about two months selling time because one of the properties stank so bad you could not go in it to show!  It was wretched! After repeatably telling the contractor who was never available or anywhere to be found, that there was a problem with the plumbing or someone did not flush the toilet for weeks!  (Which is what it was).  I still question that because I never saw a toilet installed, I think someone was going behind the wall.  Anyway, the lies were plentiful and if you chose to believe you could.  Naaaaa...

Now folks, we have worked with a lot of builders and this one takes the prize!  As I write this we have had good luck for our client, one home has been leased and we have another contract on the way for the other, but the buyer is difficult, all I know is that he has a lot of migraines, bad knees and is very analytical, could be a lawyer, doctor or engineer, (apologies to you that are in these professions)
So, now we must get through a soil analysis to make sure the right foundation was put on the property, it ain't easy.

Back to the loan, because the properties are on the MLS and another investor is going to consider lending money we need to take them off the MLS, cancel - terminate ya know, because these guys don't want you to know the price. That's OK, a lot is done this way, just buyer beware...and work with someone that knows how everything operates.  Almost there, but now we have another problem because the builder put the wrong cast stone address plates on the wrong town homes so the floor plans and sq footage don't match the buildings plans from the city, Quick, GO Switch the addresses so we can sell and get these homes closed and funded for our client!

This is really a true story and only half of it, I have 4 more investment stories to tell and you thought regular real estate was fun!  RE Investing is not for the faint of heart either.