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    Wednesday, December 23, 2020

    Real Estate: Navigating Cash Offer from Investor

    Real Estate: Navigating Cash Offer from Investor


    Navigating Cash Offer from Investor

    Posted: 23 Dec 2020 04:08 AM PST

    We got a cash offer on our property for just under list price.

    Our real estate agent warned us that investors are notorious for just putting out cash offers then trying to really lower the price at inspection or just pulling out of the process.

    Do you all have any tips on how to navigate this process? We just want a fair deal.

    submitted by /u/kqiwnw
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    buyer threatening to sue 6 months post sale

    Posted: 22 Dec 2020 09:42 PM PST

    hello, i posted regarding this issue once before but things have since escalated. i'll try to make it quick.

    we remodeled our home december 2019. decided to sell in march 2020 and closed escrow in july 2020. now in december 2020 the buyer and his agent reached out to our listing agent, stating that there is problems with the two upstairs bathrooms. they are saying the remodel job was done incorrectly and water is now leaking.

    our agent said it is our responsibility to fix it. almost everyone else we have spoke with says we aren't liable. we had zero issues while living there.

    still, out of good faith we sent our contractor (who did the work) to see what was wrong and what need to be done. the new owner disagreed with what he found and what he said the issues are. instead, he now had 3 new contractors come and give estimates ranging from 15k-20k, which is more than we even paid initially.

    the buyer said he is "giving us the opportunity to make it right" before he takes further action. he said he's already spoken with a lawyer and he knows what will happen to us, and doesn't want to that to us so we should just pay.

    our questions are 1) are we liable for these repairs, even though he had an inspection and has been living there 6 months and 2) what can we do/should we do to protect ourselves in this situation?

    if anyone has been in a similar situation or has any information, advice or thoughts we would really appreciate it.

    submitted by /u/babygirl5115
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    Has anyone left their corporate job to become a loan officer?

    Posted: 23 Dec 2020 08:07 AM PST

    I'm thinking to get my license and start with mortgages on the side. My family has been in real estate for 20+ years and they think for the amount of work and stress I put up with in my corporate job (I'm a project manager at a large tech company), I could be self-employed and doubling my salary. What are your thoughts? Can I transfer my skills and be successful? The thought of not working for a corporation alone has me excited.

    submitted by /u/figuringitout911
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    FINALLY GOT A HOUSE..... well, a rental

    Posted: 22 Dec 2020 03:17 PM PST

    Seems wild to get excited over a rental, but it's been a STRUGGLE.

    As hot as the housing market has been here for sales, I didn't expect it to be as crazy for rentals. I lost my first two applications from getting overbid, and on the 3rd I finally put in a strong offer, but the listing agent snuck in a clause to allow LL to evict me w/ 30 day notice for any reason (and then tried to insist it was standard on all leases???). So I walked away from that one.

    With less then 2 weeks before I had to move, I had lost hope and was accepting my fate of having to get my shit in a storage unit and deal with an airbnb for a few weeks (Ugh). BUT THEN, I found an incredible unit just come available. It was fully furnished (which is nice because I don't have much stuff) and allowed for a short term lease. Mostly importantly, the back gate opened up to a 10 second walk to get to the community pool which had a hot tub (who doesn't love hot tubs?). I opted to put in above-asking price offer, starting with 5 month lease. That gives me the option to check out a new place during the summer, as I liked this place but wasn't crazy about staying in it for a long period of time (which is ironic for a reason I'll get to shortly). I ended up losing this bid too sadly, despite offering nearly 20% over asking price. I had to move the beds in the upstairs room into the garage, and offered to pay for it, but I guess LL didn't want the furniture to be touched. Not something I can really budge on though, as it essentially makes all those rooms unusable with beds in them.
    Sigh.

    Defeated, I go on Zillow one last time with about 10 days left on my lease. This time I decide to check the "condos" option to see if there's anything I missed.... well well well, what do we have here? A very new and nice looking detached condo (it's really more of a house) that I somehow missed that had been on the market for over 30 days. It's also in the perfect location!!!

    I go check it out and it looks awesome. The person to show me the unit was the brokers assistant, who accidently let it slip that this was the first time she'd shown the unit. With this information, I decided to make a ballsy play and put in an offer slightly below asking price, hoping there was no other offers. In hindsight, this was probably stupid to do, as it could have potentially lost me the deal with essentially no other good options available. Luckily it did not, and I was simply told "no, sorry, rent isn't negotiable". Without any true leverage, I said "worth a shot, ok I'm ready to sign".

    The next day, I'm told the owners will only do a 7 month lease because they don't want to deal with another winter vacancy. Ironically, a short term deal is what I wanted on the last property, but for this one, I actually didn't want that. The last place was already furnished so I didn't feel the need to set anything up, it was merely to get me by until summer until I found a new place. With this one, I actually really liked the house, so I didn't love the idea of getting everything set up just to move again so soon. I offered a 15 month lease so they could have a spring vacancy but they declined. Sigh.

    I accepted the 7 month lease and then get told the owners are willing to do 12 month, wtf lol. Fine with me.

    The issue with this though is that I was thinking of purchasing sometime around spring of 2022, so the ideal timeframe is to end my lease around May 2022. However, I also didn't want a 7 month lease and have to deal with moving again if the owners decided to not grant me the renewal. This puts me in an awkward spot where I'll be looking for another short term (5-7 month) lease next year in preparation of buying a house. Either way there was some sort of downside, so I chose to go with the option that allows me to delay the issue. Plus, it seems owner is likely willing to grant me the second short term lease since it will put them back at their intended summer vacancy.

    Sadly the lease doesn't start until Jan 10th and my lease ends Dec 31st.... have to deal with moving my shit 2x and a hotel. BUT WAIT.... email my apartment complex, they tell me my unit is still available and they're happy to offer me a 10 day pro-rate!!!!!!!!

    It may not seem like a big deal, but I've moved around so much the last few years, and in particular the last 1.5 years or so I've been fairly unhappy with my living environment. So this time I was determined to be extra picky and get a place I loved. It's just a rental and not my forever home, but I shall be content for at least a year, huzzah! Nice to see it all ended up working out.

    It's been fun my dear friend Zillow, but I can no longer browse you for hours each day. Don't worry though, we shall meet again soon.

    submitted by /u/TylersDailyThoughts
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    What does the background check process entail for landlords?

    Posted: 23 Dec 2020 08:33 AM PST

    I'm just curious about this process and I'm not sure where to post this question.

    When a landlord gets your information they typically call previous residences, your employer to verify employment and maybe personal references too. What sort of information do they ask?

    I've always assumed they can only ask if the renter lived there in the case of previous residences. And for the case of employment they are only allowed to verify employment. Is this right?

    The reason I ask is that I am in the process of renting a condo and the realtor is going through a lot of hoops to get extra information. For example I've always put HR as the contact for my company to provide proof of employment but the realtor was calling repeatedly to get my direct boss' line to speak to them. This is after giving my bank statements that shows deposits from my work and my paystub.

    They are also calling multiple people at my previous apartment complex.

    I'm not knocking the process if I was renting out my personal property I would be thorough too, but you always hear people say things like "well legally they can only ask if you work there" or "apartments can only say that you lived there" and I wanted to find out how true that is.

    submitted by /u/Jenology
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    Are there any fellow real estate agents here that despise the MLS??

    Posted: 23 Dec 2020 08:48 AM PST

    So many issues, ZERO support, and no accountability. They're rude, provide no value, and we PAY them to use this steaming pile of shit. Wtf?

    submitted by /u/dogeatcateatmouse
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    Buyers remorse common with home buying?

    Posted: 22 Dec 2020 03:51 PM PST

    I'm curious, have any of you ever felt like you made the wrong decision after closing on a home? Even if it was everything you wanted? Why did you feel that way? And when did that feeling subside?

    We just closed on our home. It's everything we wanted size wise. We went from 900 sq ft to about 2000 sq ft. We have a decent yard. Moved from IL to WI to get out of a state that has insane property taxes. It's literally a brand new house, only 1 year old. We budgeted for it and knew it would be a little tight for about a year until son is in kindergarten and other son is out of daycare.

    As we are settled I'm just feeling like "did we make right decision". We went from 1200 to 1700/mo mortgage. I like to save money, so I think it's killing me we won't be able to save that much a month anymore.

    Please no negative comments. I'm just looking to see if anyone else has felt this way and what the cause was for them and how they felt better. Thank you!

    submitted by /u/Solson1313
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    First Time Homebuyer Offer Questions?

    Posted: 23 Dec 2020 03:46 AM PST

    I live in a hot market, houses are only lasting a week or less for the most part.

    Should my first offer really be at list with 20% cash down and no home to sell if the listing agent is telling my buyers agent to submit our final and best offer, or are they just trying to see how much we will budge? It's a great value, but I will not die of sadness if I don't get it. There's currently another offer and ours and theirs are being presented tonight together.

    Am I locked into my mortgage lender when I submit an offer with their pre-approval letter? I didn't see anything binding me to them in the offer paperwork I signed.

    How can I extend closing time? I live in my parents basement so I'm not chomping at the bit to close, it's just too good of a house to not put an offer on. If we can't, no worries.

    Edit- the sellers just went under contract on a new home.

    Thank You 😊

    submitted by /u/mojitomomma
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    [California] Buying out family member's equity

    Posted: 23 Dec 2020 10:31 AM PST

    My parents and uncle co-own a paid off rental house worth 400k and they want to sell it to me. My parents want to gift me their portion (50% equity) and I would buy out the other 50% equity from my uncle. How does this work? Do I go to the bank and ask for a 200k mortgage and the bank will pay 200k upfront to my uncle and I would get a 30 year 200k mortgage to pay back the bank? Would the 200k equity from parents be written off as a gift? I am under the impression that it is not subject to taxes because they are nowhere near the gift tax.

    submitted by /u/JustAMango_911
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    What’s everyone’s worse and best experience with insurance claim?

    Posted: 23 Dec 2020 10:19 AM PST

    A property i'm under contract with is now going through a claim for storm damage roof.
    My fingers are cross hoping this doesn't delay everything for weeks-months.
    Our initial closing date is Jan 7th and i'm hoping we could somehow make that date.
    Meanwhile during the wait, I want to hear people's experience to keep my mind from wandering to dark places.

    submitted by /u/cltzzz
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    Refinancing... should I shop for a better deal?

    Posted: 23 Dec 2020 09:57 AM PST

    I have 685 FICO, rebuilding from life happening a few years ago. Also took a 3-month forbearance from May-July when I took a temporary pay cut and paid off some debts with the stashed cash. Cooper made it very easy, I was signing documents within 10 minutes. I'm waiting for conditional approval now before going to underwriting. Pretty sure I could cancel at any time.

    The current loan is $370,200. 4.875%. P&I $2,032

    New loan: $376,000. 3.125%. P&I $1,610. $300 credit at closing. Skip February payment. No appraisal or cash out of pocket (valued at $545,000).

    Saving about $422 a month with the refinance. Breakeven is a little after 13 months.

    Should I shop around or is this about as good as it gets with my 685 FICO?

    submitted by /u/JeepMunkee
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    Eager for a New Construction

    Posted: 23 Dec 2020 09:03 AM PST

    My husband and I recently got pre approved and there's 2 new construction homes we are considering. With homes selling so fast, we are eager to get on their wait list but our real estate agent is on vacation for the holidays. What would be the best course of action for us? I have an appointment with one of the sales associates on one of the properties to go over their process and other questions... should we get on the list? TIA for any advice you can offer!

    submitted by /u/Kizlit109
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    Anyone with mortgage underwriting experience?

    Posted: 23 Dec 2020 08:42 AM PST

    I am thinking to moving towards becoming a mortgage underwriter, and would like some advice anyone is willing to share.

    submitted by /u/Random_Heero
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    Seller Financing Help Needed

    Posted: 23 Dec 2020 08:29 AM PST

    We were approached by a buyer with a seller financing offer. We have no mortgage on the property.

    10% down payment

    6% interest amortized for 30 years but with a balloon payment due at the end of five years

    We'll be taking a loss with the offer price but with the 6% interest for 5 years, we are about break even.

    Our biggest concern is if they default, we don't know anything about the foreclosure process.

    Someone had mentioned we can sell the private note.

    Appreciate any insight.

    submitted by /u/ladeeblahblah
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    (North NJ) Looking into buying a house next summer and I have some questions

    Posted: 23 Dec 2020 08:09 AM PST

    So for some background, I currently live in North Jersey and houses around my area are currently for sale between 350-500K. I've been mainly looking at duplexes which narrows my options quite a bit.

    As for some financial situation, I make 75K and I bring home 2K every 2 weeks post taxes. I am currently living rent free, no CC debt and 25K student loans(dont have to start paying for 6 months since I recently graduated). Out of the 2K I bring home biweekly, I am depositing 1.7K to a savings account so I am currently on the path to have a 10% down payment on 500K by next September.

    First Time Buyer and Credit Score: 770

    Now for the questions:

    1. From what I can tell since a prequalification is not worth anything and preapprovals are only valid for 90 days, how would house searching work? Let's say I wanted to start looking at places to at least narrow down my options due to high property tax areas. Do I just need to wait until I'm 90 days away from having the down payment to start doing anything?
    2. Based off question 1, if I wanted to start looking at houses now so I can get a good idea of areas I'd want to look into 6 months from now, would it make sense to get a preapproval now and then another one when it comes time to buy or will that only hurt me?
    3. From others people experience, is it realistic for me to get a house by myself? From what I've been looking at most home owners are married and although I do have an SO, I am not at a point where I would be comfortable including her in any of this which is why I am doing it solo.
    4. My long term goal is to buy a duplex, live in one unit and rent the other. Then, continue saving and later down the line once I have enough saved, get a second single fam home(my final home) and fully rent out the first one. I don't like making too many assumptions about the future but is this something that's possible as a single person or is it more of a dream? I'm mainly going the duplex route because of my goal but if it really is a farfetched idea then ill most likely change my plans and just look for my forever home now

    Questions related to real estate in North Jersey:

    1. For people with real estate experience in this area, any advice? Like places to avoid, maybe realtor recommendations, etc.
    submitted by /u/aanthonyz
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    Manufactured Home and Two Acres Adjacent to Family Acreage

    Posted: 23 Dec 2020 07:38 AM PST

    We've had an opportunity come up to buy two acres that is attached to my family's 25 acres. It is $159,000 for those two acres and a well taken care of double wide that has been turned into real estate (on permanent foundation, brick skirting). It is 4 bed 2 bath. It also has a two story building with a 12x20 footprint. The first floor would be a workshop and second floor would be our homeschool space/office. We want to begin some homestead initiatives on the property.

    I feel that it is a little overpriced in general because of this market, but is a reasonable price relative to similar properties. We are in Western North Carolina and a lot of people are moving here from Asheville to escape high rent.

    One question is whether or not manufactured homes can be kept nice enough for resale or rental long term. This one is from 1986. But like I said, it was well taken care of. Only issues are light cosmetic.

    I'm working through the long term goals of how long we can live in this house and keep it nice, as well as actually building equity and creating a situation where we could possibly build a stick-built home and rent this one out in the future.

    submitted by /u/gadzookery12
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    First time homebuyer question applying for VA loan

    Posted: 23 Dec 2020 06:47 AM PST

    In Oklahoma.

    recently married. wife has average 750 score. mine is average 680.

    when applying for the VA loan, will my low score affect the rate we are given or the monthly mortgage payment?

    edit. i realize this is vague so I will add. wife has no debts, my debt is my car payments

    we gross incomes together monthly at around 4000-5000 a month after taxes.

    submitted by /u/whatadiva
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    How do I get a loan with a rental property

    Posted: 23 Dec 2020 06:42 AM PST

    Hello everyone,

    A few months, I purchased a rental property in Florida with stable income for $1500 per month. There is no mortgage. I remember reading somewhere on Reddit that you can get a loan for rental property if you prove rental income (which I have rental lease agreements) or use a collateral loan.

    What do I need to prepare so I have it readily before I visit with a loan officer? Also, what should know before doing this?

    submitted by /u/Robin2Fast2Furious
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    Looking for a rehab book that was posted here

    Posted: 23 Dec 2020 06:10 AM PST

    I came across a reference to a book about what to look for when buying a place that could be rehabbed but forgot to save it. This is a long shot but does anyone have book recommendations on this subject? Maybe someone will have the same book in mind

    submitted by /u/lems2
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    Seller waiting to accept offer until new year?

    Posted: 23 Dec 2020 05:35 AM PST

    Found a great house in NY that checks all the boxes. Submitted an offer just before the house was taken off the market in early December. Now the seller is telling my agent he will likely accept our offer and not re-list but doesn't want to enter into contract until mid-Q1 with a close in mid Q2 2021.

    Our lender is telling us we can't lock in our rate until contract process is started and rates are bumping up slightly. We've been thrilled to get 2.875% and assume this will run less than inflation, so we'd really like to lock in.

    The seller is also moving and buying across the country in PNW. In my mind, it's a win-win for us to be under contract: for them as buyers with a contingent sale, and for us so we can end the headache...

    I'm a first time buyer and am a bit perturbed: why the hold for so many months? And if the market situation changes by Spring close (desired timeline) it would seem it would benefit the seller to have us locked in as more houses come on the market while we might miss the great rate and other houses if the market weakens...

    Is this really just an emotional seller? Or is it beneficial to the seller to wait this long for a reason I'm not seeing?

    submitted by /u/Munchmunchmunchies
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    How to extend a closing date

    Posted: 23 Dec 2020 05:21 AM PST

    I'm buying a house from a friend. Two things look like they will delay signing next week. The appraiser supposedly went MIA after doing the field work so we may need another appraiser on short notice (with Christmas holidays) or they need to work with me to waive the appraisal. On the seller's side, his tenant was about to move out this week after being approved but either the tenant or his roommate (they are kinda a joint thing as they are both older disabled vets who can't seem to afford anything on their own) failed the background check.

    What are the correct steps to push back closing?

    My best guess is:

    We need to draft up an addendum. Notify title company. Notify lender. Update insurance. Reschedule utilities transfer.

    Am I on the right track? Am I missing anything? Is there any specifics I should know about?

    submitted by /u/entimaniac91
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    FHA Insurance Denied after Closing on House?

    Posted: 22 Dec 2020 04:26 PM PST

    I purchased a home a few months ago in Houston with an FHA loan. During the underwriting process I was worried that I would not get approved because of my student loans since the FHA guidelines do not allow for income-based student loan repayment plans (IBR) to be used. I attended graduate school, so my student loans are quite high and FHA wanted to use 1% of the balance and add it to my monthly debt-to-income ratio, which would not have allowed me to qualify for the house I wanted. A loan officer at my mortgage lending company said that if I could get an estimate letter from my student loan servicer stating what the monthly fully amortized payment would be on a standard extended plan (about 0.5% of the balance), I would qualify. So I did all of this, got approved, closed on the house, and moved in.

    I guess my file was reviewed by FHA and now I'm being told by my loan officer that I need a letter of the actual monthly payment, not the estimated payment, or else they may call the note due. Why is this a problem? Because my student loan servicer can only provide a copy of the IBR repayment amount since that is the plan I am currently on, which FHA does not allow for. I tried contacting my student loan servicer to officially switch over into the standard extended repayment plan and was told that I cannot do this yet since I only made 1 payment (I consolidated my loans earlier in the year) before the COVID-19 pandemic hit and my loans were put into automatic forbearance.

    I'm so confused about how I was able to close on the house to begin with if there are issues and what happens moving forward. Does anyone have any idea about what I should do or what happens next? My loan officer said they may have to roll me over into a new loan, but how is that possible and what if I don't qualify for a conventional loan or some other issue?

    submitted by /u/marik120903
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    Finally got an offer accepted and a 2.25% interest rate!!

    Posted: 22 Dec 2020 04:35 PM PST

    After almost a year of getting beat out by bidding wars, and a failed deal (no permits for an addition), we FINALLY got our offer accepted!!! We live in the Northshore of MA, using the VA loan with an amazing interest rate of 2.25%. We thought this house slipped away from a crazy high ball offer, but their deal fell apart and we were next in line, for 30k less than their offer. Still doesn't feel real! This market was extremely frustrating as a first time home buyer, especially using a VA loan, and getting beat out over and over. It feels so good to finally be here!

    submitted by /u/_thebigeasy
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    First time homebuyer, not handy... avoid private wells/septic?

    Posted: 22 Dec 2020 06:13 PM PST

    First time home buyer; we found a home we love except it uses private well water and septic. I am admittedly not the most handy person nor do I have much interest in learning all the DIY details for these systems (yet).

    Biggest concern for us is health safety and the exorbitant costs if one of these systems breaks. We are OK with paying a professional to do the annual water inspection / occasional septic clean out, of course. We have a perhaps irrational concern that some contaminant will enter the water source inbetween annual checks, or other unknown we don't know to check, that would normally be done by the city.

    All this being said, are we being over-concerned with the well/septic situation? Should this detract us from purchasing a house we otherwise would love to have?

    Thanks in advance.

    submitted by /u/MAIRJ23
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