We put our first offer in on House #19 on July 21. For over 40 days, we called the listing agent every third day to see what the bank was deciding. He kept saying the asset manager was confused with a code compliance issue and was going to put the property on hold for now. That didn’t stop us and 1.5 months later, our patience paid off huge.
This is the second house we own on this street, House #18, is maybe .5 mile south on the same street.
To compare how great of a deal our patience got us:
4 bedroom, 2 bathroom, 1,337 sq ft, just over 7,000 sq ft lot and built in 1950’s
4 Bedroom, 2 Bathroom, 1,820 sq ft, over 40,000 sq ft lot and built in the 70’s
They both need 25,000 – 30,000 of work. But we ended up paying over 5,000 less for House #19. It’s not that House #18 is a bad deal, just House #18 is a very good deal. We have decided we are going to put it in our rental pool because it has such a big lot (land value is essential zero right now) it will cash flow and it’s somewhat of a newer house (in comparison to what we normally buy).
I just wired funds for this house this morning and we should close our purchase escrow on Wednesday. I am hoping to have a tenant in the property by the end of October.
When you see a property that is in a unique situation (essentially the asset manager did not understand California title issues, they’re from Texas) remember the opportunity involved. Follow up is really key in this business, you will miss out on some deals, but keep trying until they tell you to stop calling.