I BROUGHT NO MONEY TO CLOSING AND LEFT WITH $4000
Thanks to Prosper Inc I looked at fifteen houses, made three offers and had one offer accepted at a wholesale price. Most of the properties that I found were through my real estate agent, but I found the last one online using Craig’s list. The three-family house was listed on Craig’s list by a real estate agent. The listing was very detailed and had several pictures on it. Based on the information on the listing, I decided to give the real estate agent a call. He quickly returned my call and I was able to view the property within a few days. After seeing the property and analyzing its Fair Market Value (FMV) using the tools I learned from my coaching sessions, I was ready to make an offer. I identified my base price ($125K) and my max. offer price ($140K) so I met up with the seller’s real estate agent and made an initial offer of $125K plus the seller would provide $2,500 as a decorating allowance and $1,000 to pay for a one year warrantee on all three units (asking price $155K and projected FMV 175K). I received a counter-offer the next day for $141K. I made a second offer for $137K, but in addition to what we already agreed to I asked for an additional $2,000 from the seller to pay for closing cost. The seller made a second counter for $137,500 and agreed to all my other terms. I accepted the counter and after all of the negotiating I ended up netting a $132K contract for the house which was 8K below my max offer. My next step was to lock down financing. I called at least 10 banks and mortgage companies to see if I qualified for 100% financing. I could not find anyone in the industry that was offering 100% financing so I went with the next best things which was a FHA loan with 3% down. Since my goal was not to bring any money with me to closing, I negotiated with the seller to add the 3% to the sales price and agree to an additional 3% seller concession. I had an inspection done and overall the property did very well, but there were a few things that did not pass inspection so the seller agreed to fix them before closing. I found a home insurance policy and the appraisal came back positive so we were ready for closing. I did not bring any money with me to closing and I ended up bringing home a check for a little over 4K. I bought this house with two out of the three apartments rented and I plan to live in the third apartment. This is my third property and I have bought the last two within the last 6 months. I am planning to buy my next property over the summer.
Thank you again for all your support.
Adrianne M.
Cincinnati, OH
