<p>Keeping my fingers crossed for you. What interesting developments!</p>
<p>If so, there is still a question remain. If the Escrow is fully funded, then you are going to pay interest on it and the seller still can drag the things out. If the Escrow is not funded, how can the seller trust that you will fund the Escrow in two months?</p>
<p>These are all good questions. I am only releasing $10k of the deposit, so that is cash that doesn’t have an interest payment on it while I am waiting. I have changed offer that escrow does not close until she vacates, so she has an urgency to move to get the remaining funds. We aren’t going to do a rent back, no rent paid. No other funds of mine will be tied up in escrow, my only loss is if she takes up the whole 60 days. That is 60 days that I am not working on anything to make any income. That is my huge risk here.</p>
<p>Listing agent says that she is out looking at places to move today so she definitely wants to move.</p>
<p>Just got off phone with listing agent and I asked her to sign a Non Disclosure agreement. This protects both of us because I don’t want to get into a ‘bidding war’ with this other buyer. It also protects the listing agent because the other agent is in the same brokerage. If I get the property and it comes out in the end that I have a lower sale price, the listing agent can rightfully tell the other agent that she is not allowed to disclose the terms of the sale.</p>
<p>Good protection, cb.</p>
<p>Your fund is going to be tied up anyway within the 60 days, cause you cannot buy another house with that fund. The only savior is that you do not have to pay interests to the bank(s)</p>
<p>But the seller will still have to go through the thinking that you could walk away with only 10k in the escrow. If it is a 40K deposit, that is going to be different. I had my buyer to increase deposit when they asked for an extension, so they have more money at stake.</p>
<p>We are now $1,500 difference between buyers and I know that the other buyer was invited to go through the property at noon today. </p>
<p>Yes, I will be stuck with a potential loss of income for 60 days. Listing agent is going to do everything to get help her move by March 1st.</p>
<p>The other buyer did their final submission and they did not change their price. I’m grateful that they didn’t raise their price and start a bidding war, but this also tells me that the competitor definitely thinks the property is worth it. So, I asked my agent to do a double triple check of the comparables and the size of the property and she is confirming my future sale price so I matched the other offer. I think we are $80 difference now because of some commission differences.</p>
<p>It’s all being presented to the Seller this evening so I will keep you updated. </p>
<p>We’re all rooting for you, coralbrook!</p>
<p>Some times this kind of war ended with beauties contest. I fought many and won some, lost some.</p>
<p>I hope CB had her lipstick on when went to see the owner…Just kidding </p>
<p>I had fight for a client in a beauties contest on a commercial building that sits right in the middle of the town of Millbrae, the owner went with a buyer he “KNEW” and we cannot do any thing about it.</p>
<p>$80 difference? I’ll throw it in for you, cb, so you can get this done!!</p>
<p>I got it!!! I got it!!! I cannot believe it. I’m sitting here stunned. About to break out a bottle of wine. Need some sleep, haven’t slept in days.</p>
<p>Other offer ended up $1200 higher net but she chose me because she liked me.</p>
<p>Details to follow</p>
<p>Happy dance!</p>
<p>Congrats! Good luck in your reno and making a decent profit in a reasonable amount of time. I’m sure it’s always helpful when the seller likes you. :). Sounds like the broker did great with buyer and seller commissions too. </p>
<p>Ah, coralbrook, congratulations! You deserve it!!!</p>
<p>Now, here’s to hoping she moves out quickly!!</p>
<p>
</p>
<p>You took lots of steps to make sure she would like you. It paid off!!!</p>
<p>Congratulations!</p>
<p>Congratulations… this thread is one of the main reasons I still come to CC… so very much looking forward to reading about your adventures</p>
<p>Congrats - looking forward to this next remodeling journey ;
</p>
<p>Congrats!</p>
<p>I guess you will come back in TWO month?</p>
<h1>21 - North Park Original Spanish</h1>
<p>Here are the details about the house. This house is located in North Park and is only 1 block from Morley Field in the Balboa Park area. There are a couple of streets in this neighborhood in very high demand and this is one of them. The other area of North Park in high demand is a small set of streets called ‘Altadena’.</p>
<p>For those of you outside of Southern California you are just going to choke at the value of this home.</p>
<p>2 bedroom / 1 bath
900 sf
Only 3,500 sf lot ( that’s not a typo).
Barely any room in back for patio, definitely not enough room for any kind of sq ft addition</p>
<p>My estimate of fixed up future sale price = $560,000 (yes, I know, ridiculous!!!)
Original Craftsman style homes and original Spanish homes in high demand. I personally like the Craftsman style better</p>
<p>My first offer was going to be $410,000 with $40,000 deposit against the $427,000 asking price.
Listing agent said I needed to be at $415,000 to get the house.
While Listing Agent was meeting with the Seller to review my offer another full price offer came in
I reviewed my options with the Listing Agent and agreed to increase my offer to $418,500 (and I secretly know that she reduced her commission to 5% to get the sale, thus making my offer worth about $4,300 more = $422,800)
Before she could present my new offer to the Seller, the other offer came in and finalized at $427,000 with some of the same creative terms - including releasing $10,000 of deposit to Seller (very mysterious how they had same terms)</p>
<p>At this point I panicked because I just couldn’t believe that I would be able to sell this little bungalow for $560,000 after renovation. I went back to my agent (who will sell it in the future) and made her go through everything in MLS with me. She was able to find 5-6 comparables of same size (in average condition but not excellent condition), same half lot size, that sold within 7 days on market at $560,000 to $575,000 last year. The higher sales were during the March/April 2013 time frame when sales were really heating up in that neighborhood. The $560,000 was during October 2013 when sales were slowing everywhere. There are not any recent sales because this neighborhood just has no inventory, thus the high prices.</p>
<p>So, based on the $560,000 future sale price and the fact that, just once, I want to beat out the big boys I increased my offer to $420,000. Even though my offer was about $1,200 lower in net gain after costs to the Seller, she chose to sell to me because she liked me and had seen photos of some of my previous projects. Her Financial Advisor (who was there to sign with her) advised that $1,200 was one month’s living costs in her retirement, she still chose my offer. She needs every dollar from this sale for her retirement. There is no mortgage on the house and I am guessing that she has no retirement savings at all (since she doesn’t even have a couple of thousand dollars to go rent a new apartment).</p>
<p>Purchase Price = $420,000 (plus some closing costs)
Estimated Renovation = $60,000
Estimated Closing and Carrying Costs = $30,000</p>
<p>Closing and Carrying Costs are the items that the television shows and cocktail party flippers forget to mention 
</p>
<p>I have loaded some photos I took to a new Flickr Group - CC Flip Project 2. </p>
<p><a href=“Flickr Login”>http://www.■■■■■■■■■■/groups/2560169@N22/</a></p>
<p>If this doesn’t work, please send a private message and I will share the link with you</p>
<p>I’ll keep everyone posted as the saga continues.</p>