Happy Father's Day to all the dads out there.
- Sun ☀️
Livin' La Vida Luna
Don't mind me looking like I'm about to fall over. My babies are happy and that's all that really matters.
Countin' My Chickens 🐣
I have this unrealistic and unwavering belief that things will go my way.
Like, when I'm holding 16 against a dealer's 10... I always expect to pull a 5 (unless we're allowed to surrender - then I surrender 🤣).
But let's be clear about why I'm optimistic. This is NOT me putting the "Secret" Law of Attraction into play.*
- I don't write myself checks for 10 million dollars.
- I don't chant manifestations into the mirror.
- I don't speak my desires out to the universe and wait for them to be answered.
*No shade to anyone who does those things.
I just generally feel prepared for most things that come my way. And if things go sideways, I'm confident in my ability to course-correct and get back on my feet.
Which brings me to this week's summary. We had a few setbacks.
1) Cancelled Contract in Millburn, NJ.
A few weeks ago, we received a call about a 2-family home in Millburn, NJ. The seller was responding to a letter we sent in the mail about buying their home.
After touring the building, we made an offer and they signed a few days later.
This past Monday, we had the property swept for an oil tank and it came back clear.
On Tuesday, we reached out to the seller to move forward, but they didn't answer our call.
On Wednesday we got a cancellation letter from their attorney. 😬
No warning, no explanation. The sellers completely ghosted us.
On Thursday, we finally got a hold of the seller. When we asked what happened, they said they didn't want to sell because they didn't want to kick out the current tenants.
We said, "no problem, we'll take it with the tenants in place."
Then they said they weren't sure about the price.
We said, "no problem, we can come up a bit if you're willing to carry a note."
Then they said it wasn't the right time. The excuses went on and on and before they finally said, "look, it's just not going to happen."
So now we're out a few hundred bucks on due diligence and sitting on a voided contract for a property we already had a strong buyer lined up for.
2) Difficult Lender in Westfield, NJ.
Since March, we've been under contract to sell a duplex in Westfield, NJ.
Our buyer has their rate locked in the mid 3's and based on the lender's most recent requests, it seems like they're trying to kill this deal.
The lender wants us to cut the grass every 2 weeks before closing, clean out the basement (which is full of the existing tenant's belongings), and fix a cracked window in the french door within the interior of the first-floor tenant's unit.
We had to also resupply the operating agreement for our company that owns the property, resend the tenant's lease, as well as prove that one unit was vacant so the buyer had a place to live.
We satisfied all of these requests and the loan is still stuck in underwriting.
ICYMI: After the Fed hiked rates by 75bps this past week, the 30-year fixed-rate mortgage shot up to the high 5's or mid 6's (depending on your qualifications).
My best guess is the lender is trying to cover their asses on this loan. If they honor the buyer's rate lock in the mid 3's, I don't think they have a way to sell this loan after we close.
What's Going To Happen?
For Millburn, we have to figure out what the seller really wants or hit them from a different angle. It may take calling in reinforcements. Maybe we get someone else to make an offer on our behalf?
For Westfield, I know the buyer wants this property just as much as, if not more than, we want to sell it. If he has to buy at a higher rate than what he's locked into right now, he'll likely still do it. After all, he received a really favorable appraisal that forced us to knock $50K off his purchase price. As long as we continue to perform as sellers, I think the ball keeps moving and we close by June 30th.
IDK, kinda feels like these setbacks are just setups for a comeback.