The Trials of Buying and Selling in this Market

Just some information on some of our recent experiences on selling some of these rehabbed homes.

While several have gone smoothly, here are a few of the issues with some of our recent transactions.

First one - appraisal and inspection all done. Bank required borrower (750 credit score and 15% down) to go an open an additional trade line and wait for it to hit the credit bureaus. Then required additional documentation from CPA on tax returns. Each of these requirements involved a 2-3 week delay, and this house which has been in contract since end of January is now scheduled to close on 7th April.

Second one - attorney buying one of our houses upgrading from a condo she owned which she planned on renting out. Inspections and appraisal done and underwriting turned down loan saying she could not own 2 properties within a 5 mile radius of each other - Seriously!! This house is now back on the market after 4 weeks of working on that sale - ouch!

Seller Financing House

So here are some pictures of the house I wrote about a few weeks ago. Had a couple who wanted to buy it seller financing as is and then fix it up themselves. Well, looks like they got cold feet, so now we started the rehab this week.

This is a 5/3 3000 sq ft house - originally 3/2 1500 sq ft but has a legally permitted addition. We will be putting in new windows/doors, refinishing kitchen with current cabinets, refinishing hardwood floors throughout (were covered with carpet), some re-wiring, 2 new bathrooms, some roof repairs, re-converting illegally converted garage. Expect to have it completed in about 3 weeks. We will then look for a family that would like to live in this house but cannot get a loan, and we will seller finance it to them at 7.5%

Stay Tuned!!

Update on 229 Toledo Court

Well folks, had a great open house last week. Accepted an offer of $227k ($2k above asking) even though we had higher offers. Based decision on tight lending guidelines and the fact that the buyer had some cash to put down on the deal. Will keep you posted as things progress with inspection, appraisal and underwriting - always an adventure in this climate!

Toledo Court Finished

Finished product on 229 Toledo Court. On MLS yesterday and open house today from noon to 2pm. Been shown 5 times so far and one offer submitted for full asking price. This home is 3/2 1600+ sq ft with views over the city.

Bits and Pieces

Just some various updates on what we have been up to for past few months. I have taken on some new partners and we are looking to expand our territory into Fairfield and Vacaville in addition to growing our ability to offer seller financing to people who want to own but do not qualify for financing.

We are in the middle of our first such deal - 5/3 3000 sq ft house (odd for neighborhood as was originally about 1400 sq ft and they LEGALLY added a two storey addition.

We are purchasing this house for $159k and then seller finaning it "as is" to a couple for $220k at 7.5% with $25k down.

This couple run a home for autistic children and were paying $2500 per month for a smaller place in Fairfield. Their new payment on this house will be $1400 or so plus taxes and insurance!!

Napa Rehab

Here are some interior pics of our 3/2 house in Napa midway through renovation - about another two weeks to go.

Biggest challenge with this house is the 150' high Redwood tree that the City of Napa says has to be removed due to encroaching on street and preventing sufficient access to garage - will definitely have pics to show when doing that work.

Progess Report Toledo Court Vallejo

Here are some progress pictures of our 3/2 in Vallejo. We are about 2 weeks into the project and expect to be finished and back on the market in another week or so.