House #24: First Contract

June 1, 2011 · 3 comments

We’ve had a tremendous amount of traffic through The Wrong House the past two weeks, we’ve gotten several offers, and as of a few days ago, we officially have the property under contract…

We received offers from both owner occupants and investors, and while we likely could have netted a few thousand dollars more with an owner occupant sale, we ultimately decided that selling to an investor would reduce both the time and energy we’d have to put into the sale.

The investor we contracted with seems very experienced, and was very interested in the property. She’ll be getting conventional financing on the deal, but has a good relationship with her lender and has agreed to keep both the due diligence and the financing contingency periods short, so if for some reason the deal falls through, we’ll know relatively quickly. Additionally, the buyer is a licensed agent, so we know we’re working with someone who understands the process and doesn’t need any hand-holding (which will also make it easier on our end).

Due diligence is through the end of this week and we’re currently scheduled to close around June 24. We have a couple back-up offers if for some reason this one doesn’t close, but so far, everything seems to be going smoothly.

I’ll have more to say when we get closer to closing…






3 responses to “House #24: First Contract”

  1. Congratulations! Hope all goes well.

  2. Luis says:

    You picked my curiosity when you mentioned financing for an investor…

    Do you know what kind of financing is available for purchasing investment property?

  3. J Scott says:

    There are lots of financing options for investors:

    1. Homepath (for FNMA loans)
    2. Portfolio Loans (check your small, local banks)
    3. Conventional Investment Financing (20% down and the property needs to be in decent shape)
    4. Private Investors (whatever terms you can negotiate)

    In the case of this property, I believe the investor is going with #3 through a retail mortgage broker and a large bank…

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