House 3: Looking Good

I received another addendum today from the buyer that details the air conditioning info and purchase price increase I talked about earlier. The lender also wanted the contract to include instructions to the escrow company that the $2,500 be made payable only to an air conditioner licensed contractor. Apparently the lender doesn't want the borrower to get any cash back at closing. It doesn't matter to me one way or the other. I was also told that...

Giving Up On Prosper.com

I'm going to give up on Prosper.com. I think they have a good idea, but it doesn't really work for me. I have a couple problems with it:The 3 year loan period. I realize this is to help the borrowers to give them a lower payment, but right now, I prefer loans of 1 year or less.Small payments. I am unwilling to lend large amounts of money on unsecured loans to people. A small loan amount combined with the 3 year repayment period equates to tiny monthly...

House 3: Buyer's Inspection Report

They managed to beat the deadline. They had 10 days to inspect the property and get me a list of what they wanted fixed. At 9:30 PM on the tenth day, they faxed it. As usual, it was just a copy of the inspector's report with a note saying they wanted everything fixed. (Actually, there was one minor thing they didn't want fixed, but it was basically everything.) Anyway, we counter-offered back with crediting them $1,500 at closing for them to fix...

How Do They Stay In Business?

I am continually amazed by the fact that escrow companies are able to stay in business. They have about the worst performance record for any industry I have ever dealt with. (And this includes dishonest cabinet makers.) It is even more mind-boggling when you consider all their instructions, every single thing they have to do, is in writing! They cannot do anything based solely on a verbal order. How hard is it to follow written directions?As of...

House 3: Still In One Piece (Updated)

I stopped by the property this morning and it is still in good shape. I think two things are helping keep the vandals at bay: the padlocks I put on the back gate and all the construction going on in the neighborhood. The construction has caused some streets to be closed and I had to take a rather circuitous route to get to the property. I'm glad the house is under contract now. Viewings for buyers would probably be low due to the construction.I still...

The Next Venture Has Begun

As I alluded to earlier, I have started a new venture that is pretty exciting. Things have been finalized now and I am willing to discuss some details.Several months ago, I attended a get-together of several people from the richdad.com message boards. I came out of that meeting very fired up on apartment investing and got started on educating myself on that subject. I haven't gotten very far in that respect, but I have put another one of the important...

House 3: Another Update

I've received a copy of the inspection report summary. Nothing too out of the ordinary, considering the house is 50+ years old. Some things were found that the first inspection report found and some things were noted that weren't in the first report. I have yet to hear anything from the buyer regarding what, if anything, they want me to fix. I expect that will come Monday or Tuesday. I also received a copy of the earnest money deposit check.One nice...

House 3 Update And The Next Venture

Escrow has been opened on House 3 and the inspection is supposed to be happening today. I will be getting a fax of the signed contract and the earnest money receipt sometime today. I'm glad to see the inspection is happening just one day after escrow was opened. The buyer is not selling a house to buy this one, so perhaps she is hurrying to get into the place before the first of the month so she doesn't have to pay August rent. (Not to mention collecting...

House 3: Sold!

My counter-offer was accepted and the property is now in escrow aga...

House 3: Two Offers Received

While I was in Las Vegas last weekend, my Realtor got two offers for the property. One was for full price with a 3% seller contribution. The buyer pays for the home inspection and I am to pay for a home warranty at a cost not to exceed $350. The buyer put up $1,000 earnest money and is getting a 100% loan. The good news is, even though the contract says the buyer wants to close around mid-August, the agent said they would be willing to close sooner...

For The 30 And Under Crowd

I came across the Penny Foolish blog, written by Kira, a young recent college grad just starting out on her financial education. What caught my eye was the Festival of Under 30 Finances she is putting together. (More info here.) She is soliciting articles about financial issues relevant to people under 30 years old. I think this is a great idea and I hope it is a success! If you have something relevant to contribute, please submit it to h...

House 3: Security Update

I stopped by the property this morning on the way to work. We had a monsoon last night with not a lot of rain, but lots of wind, at least where I live, and wanted to make sure the property was ok. I also needed to make my weekly visit to check on it and make sure it hasn't been broken into again. The fact that I had a dream a couple nights ago that someone had broken in and graffiti-ed the inside also had me a bit nervous.I was pleased to see everything...